Fair value measurements

The carrying amounts of cash, other current assets, accounts payable, accrued liabilities, notes and advances payable, and amounts due to related parties approximate their fair values due to the short-term nature and/or the terms of these instruments. The fair value hierarchy under GAAP prioritizes the inputs used in valuation techniques into three levels:

Level 1 -quoted prices (unadjusted) in active markets for identical assets or liabilities; 

Level 2 -observable inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and 

Level 3 -assets and liabilities whose significant value drivers are unobservable by little or no market activity and that are significant to the fair value of the assets or liabilities. 

Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). There were no assets or liabilities measured at fair value on a nonrecurring basis during the years ended May 31, 2026 and 2025.