NOTE 9 – COMMITMENTS AND CONTINGENCIES

Legal

In the ordinary course of business, we may be, or have been, involved in legal proceedings from time to time. As of the date of this filing, we have no pending or threatened legal proceedings.

On May 26, 2023, Sabby Volatility Warrant Master Fund Ltd. (“Sabby”) filed its complaint against the Company in the Supreme Court of the State of New York, New York County, seeking relief with respect to certain MMEX securities held by Sabby.

In July 2026, the Company entered into a Settlement Agreement and Release with Sabby, including provisions relating to the Company’s Series B Convertible Preferred Shares (stated amount $985,000) and a promissory note in the principal amount of $183,955 held by Sabby. Under the settlement agreement, the Company agreed to pay Sabby $533,750, of which $266,875 was paid on July 21, 2026 and the balance is payable within 90 days of the agreement. Upon receipt of the initial payment, Sabby surrendered the preferred shares and the note for cancellation, the 9,025,000,000-share conversion reserve was terminated, and the parties exchanged mutual general releases; a stipulation of dismissal will be filed with the court. Because the settlement provided additional evidence about conditions existing at the balance sheet date, the Company recorded a liability of $297,552 and a corresponding loss on litigation settlement in the fiscal year ended April 30, 2026. Sabby retains 190,257,512 previously issued shares of common stock.