| DERIVATIVE LIABILITY |
NOTE 8 – DERIVATIVE LIABILITY
The derivative liability consisted of the
following:
| Schedule of derivative liability | |
| | |
| | |
| | |
| |
| | |
May 31, 2026 | | |
May 31, 2025 | |
| | |
Face Value | | |
Derivative Liability | | |
Face Value | | |
Derivative Liability | |
| Convertible note payable issued December 29, 2015, due December 29, 2016 (M) | |
$ | – | | |
$ | – | | |
$ | 40,000 | | |
$ | 40,000 | |
| Convertible note payable issued April 5, 2017, due on demand (W) | |
| – | | |
| – | | |
| 29,000 | | |
| 43,500 | |
| Convertible note payable issued April 5, 2017, due on demand (X) | |
| – | | |
| – | | |
| 21,500 | | |
| 32,250 | |
| Convertible note payable issued March 5, 2018, due on March 5, 2019 (DD) | |
| 35,000 | | |
| 39,468 | | |
| 35,000 | | |
| 35,000 | |
| Convertible note payable issued September 18, 2018, due on September 18, 2019 (GG) | |
| 8,506 | | |
| 9,591 | | |
| 8,506 | | |
| 8,506 | |
| Convertible note payable issued November 30, 2020, due on November 30, 2021 (SS) | |
| – | | |
| – | | |
| 154,764 | | |
| 149,350 | |
| Convertible note payable issued June 4, 2021, due on June 4, 2022 (VV) | |
| 152,313 | | |
| 2,868 | | |
| 152,369 | | |
| 159,306 | |
| Convertible note payable issued August 27, 2021, due on August 27, 2022 (WW) | |
| 14,000 | | |
| 8,909 | | |
| 14,000 | | |
| 7,538 | |
| Convertible note payable issued November 4, 2022, due on November 4, 2023 (C) | |
| – | | |
| – | | |
| 12,649 | | |
| 6,339 | |
| Convertible note payable issued April 10, 2023, due on April 10, 2024 (F) | |
| 76,375 | | |
| 2,834 | | |
| 76,375 | | |
| 109,980 | |
| Convertible note payable issued September 18, 2023, due on September 18, 2024 (K) | |
| 3,500 | | |
| 3,947 | | |
| 3,500 | | |
| 5,880 | |
| Convertible note payable issued January 18, 2024, due on January 18, 2025 (L) | |
| – | | |
| – | | |
| 30,555 | | |
| 30,555 | |
| Convertible note payable issued October 6, 2025, due on October 6, 2026 (Z) | |
| 62,933 | | |
| 93,552 | | |
| – | | |
| – | |
| Convertible note payable issued October 10, 2025, due on October 10, 2026 (A) | |
| 90,000 | | |
| 134,617 | | |
| – | | |
| – | |
| Convertible note payable issued October 15, 2025, due on October 15, 2026 (J) | |
| 206,375 | | |
| 161,918 | | |
| – | | |
| – | |
| Convertible note payable issued October 15, 2025, due on October 15, 2026 (AA) | |
| 193,625 | | |
| 231,599 | | |
| – | | |
| – | |
| Convertible note payable issued October 23, 2025, due on October 23, 2026 (BB) | |
| 150,000 | | |
| 209,313 | | |
| – | | |
| – | |
| Convertible note payable issued October 27, 2025, due on October 27, 2026 (CC) | |
| 130,000 | | |
| 199,011 | | |
| – | | |
| – | |
| Convertible note payable issued November 25, 2025, due on November 25, 2026 (EE) | |
| 64,130 | | |
| 93,014 | | |
| – | | |
| – | |
| Convertible note payable issued December 15, 2025, due on December 15, 2026 (FF) | |
| 97,500 | | |
| 144,511 | | |
| – | | |
| – | |
| Convertible note payable issued February 5, 2026, due on December 15, 2026 (HH) | |
| 123,050 | | |
| 181,695 | | |
| – | | |
| – | |
| Convertible note payable issued February 18, 2026, due on February 18, 2027 (II) | |
| 130,000 | | |
| 217,174 | | |
| – | | |
| – | |
| Convertible note payable issued March 2, 2026, due on December 30, 2027 (KK) | |
| 88,780 | | |
| 109,210 | | |
| – | | |
| – | |
| Convertible note payable issued March 11, 2026, due on March 11, 2027 (LL) | |
| 116,667 | | |
| 196,554 | | |
| – | | |
| – | |
| Convertible note payable issued April 14, 2026, due on February 15, 2027 (MM) | |
| 77,050 | | |
| 118,311 | | |
| – | | |
| – | |
| | |
| | | |
| | | |
| | | |
| | |
| Totals | |
$ | 1,819,804 | | |
$ | 2,158,096 | | |
$ | 599,738 | | |
$ | 625,824 | |
The above convertible notes contain a variable
conversion feature based on the future trading price of the Company common stock. Therefore, the number of shares of common stock issuable
upon conversion of the notes is indeterminate. Accordingly, we have recorded the fair value of the embedded conversion features as a derivative
liability at the respective issuance dates of the notes and charged the applicable amounts to debt discounts and the remainder to other
expense. The increase (decrease) in the fair value of the derivative liability from the respective issuance dates of the notes to the
measurement dates is charged (credited) to other expense (income). The fair value of the derivative liability of the notes is measured
at the respective issuance dates and quarterly thereafter using the Black Scholes option pricing model.
Assumptions used for the calculations of
the derivative liability of the notes at May 31, 2026 include (1) stock price of $0.005 per share, (2) exercise prices ranging from $0.00004
to $0.00353 per share, (3) terms are 0 to 284 days, (4) expected volatility of 414% and (5) risk free interest rates ranging from 3.71%
to 3.79%.
Assumptions used for the calculations of
the derivative liability of the notes at May 31, 2025 include (1) stock price of $0.001 per share, (2) exercise prices ranging from $0.00004
to $0.005 per share, (3) terms are 0 days, (4) expected volatility of 3,176% and (5) risk free interest rates at 4.33%.
Concentration of Derivative Liability:
The derivative liability relates to convertible
notes payable due to:
| Schedule of derivative liability relates to convertible
notes payable | |
| | |
| |
| | |
May 31, 2026 | | |
May 31, 2025 | |
| | |
| | |
| |
| Lender A | |
$ | – | | |
$ | 149,350 | |
| Lender B | |
| 6,781 | | |
| 109,980 | |
| Lender C | |
| – | | |
| 36,894 | |
| Lender D | |
| 60,836 | | |
| 210,350 | |
| Lender E | |
| 416,185 | | |
| – | |
| Lender F | |
| 409,216 | | |
| – | |
| 8 other lenders | |
| 1,265,078 | | |
| 119,250 | |
| | |
| | | |
| | |
| Total | |
$ | 2,158,096 | | |
$ | 625,824 | |
|