Notes and Advances Payable to Related Parties Disclosure |
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May 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Notes and Advances Payable to Related Parties Disclosure | NOTE 4 - NOTES AND ADVANCES DUE TO RELATED PARTIES
The tables below summarize the loans and advances due and payable to related parties as at May 31, 2026 and 2025:
(1) Related Party Loans Payable
As of May 31, 2026, the Company owed a total of $104,819 under 6% notes payable due to related parties (May 31, 2025 - $98,923), of which $26,090 was associated with interest accrued on the principal balances owed under the notes payable (May 31, 2025 - $20,038).
As of May 31, 2026, the Company owed a total of $717,787 under 10% notes payable due to related parties (May 31, 2025 - $360,049), of which $105,452 was associated with interest accrued on the principal balances owed under the notes payable (May 31, 2025 - $48,267).
Notes payable with Mr. Richard Jeffs
During the year ended May 31, 2026, the Company borrowed $200,000 from Mr. Richard Jeffs under an unsecured credit line, which allows the Company to draw up to $200,000 at 10% per annum and is payable on demand (Note 9).
As of May 31, 2026, the Company owed a total of $316,937 (May 31, 2025 - $94,253) to Mr. Richard Jeffs, a significant shareholder of the Company and the father of the Company’s CEO and President, Mr. David Jeffs. A total of $70,602 (including accrued interest of $16,874) was borrowed under unsecured notes payable, which accrue interest at a rate of 6% per annum, compounded monthly, and are due on demand. The remaining amount of $246,335 (including accrued interest of $19,158) was borrowed under unsecured credit lines, which allow the Company to draw up to CAD$100,000 and up to $350,000, as amended subsequent to May 31, 2026 (Note 9), at 10% per annum, compounded monthly and payable on demand.
During the year ended May 31, 2026, the Company recorded $22,963 in interest on the notes payable and the funds borrowed under the credit lines with Mr. Richard Jeffs (May 31, 2025 - $4,115).
Notes payable with Mr. David Jeffs
As of May 31, 2026, the Company owed a total of $52,570 under loan agreements with Mr. David Jeffs, the Company’s CEO, director, and a significant shareholder (May 31, 2025 - $47,615). The loans accrue 10% annual interest, compounded monthly, are unsecured, and are payable on demand. The $30,000 loan was payable on April 24, 2023, and is therefore in default as of the date of these condensed consolidated financial statements. During the year ended May 31, 2026, the Company recorded $4,984 in interest on the principal (May 31, 2025 - $4,445).
As of May 31, 2026, the Company owed a total of $34,217 under a loan agreement with a company of which Mr. David Jeffs is a director (May 31, 2025 - $32,229). The loan bears interest at 6% per annum compounded monthly, is unsecured, and is payable on demand. During the year ended May 31, 2026, the Company recorded $1,988 in interest on the principal (May 31, 2025 - $1,872).
Notes payable with Mr. Amir Vahabzadeh
As of May 31, 2026, the Company owed a total of $204,700 under loan agreements with Mr. Vahabzadeh, a director and a significant shareholder (May 31, 2025 - $185,297). The loans are unsecured and carry a 10% annual interest rate, compounded monthly. A $30,000 note payable included in the total due was payable on April 24, 2023, and, as of the date of these condensed consolidated financial statements, is in default. The remaining notes payable, totaling $130,000, are payable on demand. During the year ended May 31, 2026, the Company recorded $19,403 in interest on the principal (May 31, 2025 - $13,901).
Notes payable with a significant shareholder
As of May 31, 2026, the Company owed $80,374 (May 31, 2025 - $72,756) under unsecured notes payable with the Company’s significant shareholder. The loans are unsecured and carry a 10% annual interest rate, compounded monthly. During the year ended May 31, 2026, the Company recorded $7,618 in interest on the principal (May 31, 2025 - $6,896).
Notes payable with Mrs. Susan Jeffs
During the year ended May 31, 2026, the Company borrowed $50,582 from Mrs. Susan Jeffs, mother of Mr. David Jeffs, under an unsecured credit line, which allows the Company to draw up to CAD$250,000, and a further $50,000 under an unsecured credit line, which allows the Company to draw up to $100,000. Both credit lines accumulate interest at 10% per annum and are payable on demand.
As of May 31, 2026, the Company owed $133,808 (May 31, 2025 - $26,822) under unsecured credit lines with Mrs. Susan Jeffs. During the year ended May 31, 2026, the Company recorded $6,339 in interest on the principal (May 31, 2025 - $285).
(2) Advances Payable
As of May 31, 2026, the Company owed a total of $10,871 (May 31, 2025 - $10,902) for an advance the Company received in its fiscal 2020 year from an entity controlled by Mr. David Jeffs. The advance is non-interest-bearing, unsecured, and payable on demand. |
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