Related Party Transactions Disclosure |
12 Months Ended |
|---|---|
May 31, 2026 | |
| Notes | |
| Related Party Transactions Disclosure | NOTE 6 - RELATED PARTY TRANSACTIONS
During the year ended May 31, 2026, the Company’s CEO, who is also the President and sole director, either individually or through different entities he controls, advanced $58,950 to the Company and received repayments of $21,000.
During the year ended May 31, 2025, the Company’s CEO, either individually or through different entities he controls, advanced $34,400 to the Company and received repayments of $15,000. In June 2024, the Company issued a convertible promissory note in the principal amount of $186,089 to Scott McAlister, the Company’s CEO, in settlement of unpaid rent of $69,550, advances of $83,159 and accrued interest of $33,380 owed to Mr. McAlister and/or entities he controls. See Note 8 for the terms and conditions of the Company’s related-party convertible notes.
As of May 31, 2026, and 2025, advances from related parties were $57,350 and $19,400, respectively.
The Company has outstanding convertible promissory notes with its CEO and entities controlled by him. As of May 31, 2026 and 2025, accrued interest payable to related parties was $122,864 and $58,208, respectively. Interest expense related to these notes was $64,656 and $63,208 for the years ended May 31, 2026 and 2025, respectively. See Note 8 for additional information regarding the terms, conversion provisions, maturities and carrying amounts of these notes.
The Company leases properties from entities controlled by its CEO. See Note 9 for the terms of these related-party lease arrangements and the related amounts recognized in the financial statements.
On July 7, 2024, the Company issued 5,000,000 shares of Series A Preferred stock to its CEO. The shares of Series A Preferred Stock were issued in replacement for the same number of shares of preferred stock he received when he originally purchased the shares of preferred stock from the prior CEO, as it was determined the prior issuance of the shares of preferred stock was deficient in that the state filing did not include the certificate of rights and preferences for the original issuance.
Effective March 1, 2026, the Company entered into a sublease agreement, as sublandlord, with RLSH, LLC, an entity controlled by the Company’s CEO. The sublease provides for base rent of $7,000 per month. The Company recognized related-party rental income of $21,000 under this arrangement during the year ended May 31, 2026. See Note 9 for additional information regarding the sublease terms.
As of May 31, 2026, the Company had an operating lease liability – in default of $107,000 relating to unpaid rent under the related-party lease for 2652 Blanding Boulevard, which expired in January 2026. See Note 9 for additional information regarding the related lease arrangement. |