Basic and Diluted Income (Loss) Per Share

The Company computes basic and diluted income (loss) per common share in accordance with ASC 260, Earnings Per Share. Basic income or loss per common share is computed by dividing net income or loss available to common stockholders by the weighted-average number of common shares outstanding during the period.

Diluted income (loss) per common share reflects the potential dilution that would occur if the Company’s convertible notes were converted into common stock. The Company applies the if-converted method, under which interest expense associated with convertible notes assumed to be converted is added back to net income and the weighted-average number of shares issuable upon conversion of the outstanding note principal is included in the diluted denominator. Potential common shares are excluded from diluted income or loss per share when their inclusion would be anti-dilutive.

The Company’s convertible-note agreements provide for the conversion of outstanding principal and accrued but unpaid interest of the notes into common stock.

For the year ended May 31, 2026, the Company reported net income. Accordingly, interest expense of $64,656 associated with the Company’s convertible notes was added back to net income, and 140,203,984 weighted-average potential common shares issuable upon conversion of the outstanding convertible notes were included in the diluted earnings-per-share calculation.

For the year ended May 31, 2025, the Company reported a net loss. Therefore, 130,157,613 weighted-average potential common shares issuable upon conversion of the outstanding note principal were excluded from the diluted loss-per-share calculation because their effect would have been anti-dilutive. Accordingly, basic and diluted loss per common share were the same for the year ended May 31, 2025.

The following table presents the computation of basic and diluted income (loss) per common share: