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 April 9, 2026.

On July 30, 2026, the Company and the OTC company agreed to extend the maturity date of the $50,000 note to September 6, 2026. The parties agreed to additional extension interest of $3,500 and additional equity of 150,000 shares. The note receivable is past due as of the filing of this report.

Based on management’s assessment of credit risk on the two note receivables, the Company recognized a credit risk reserve of $94,300 as of July 31, 2026. The Company’s Chief Executive Officer previously served as a consultant to the obligor on that note   maturing on March 11, 2027. That consulting arrangement is inactive, and he holds no equity of the obligor issued as compensation.