Related Party Transactions Disclosure |
3 Months Ended |
|---|---|
Aug. 31, 2026 | |
| Notes | |
| Related Party Transactions Disclosure | NOTE 6 - RELATED PARTY TRANSACTIONS
During the three months ended August 31, 2026, the Company’s CEO, who is also the President and sole director, advanced $8,000 in cash to the Company. During the same period, the Company recognized $21,000 of rental income from RLSH, LLC, an entity controlled by the CEO, and recorded the amount as a reduction of advances from related parties. As of August 31, 2026 and May 31, 2026, advances from related parties were $44,350 and $57,350, respectively.
The Company has outstanding convertible promissory notes with its CEO and entities controlled by him. As of August 31, 2026 and May 31, 2026, accrued interest payable to related parties was $139,161 and $122,864, respectively. Interest expense related to these notes was $16,297 for each of the three months ended August 31, 2026 and 2025. See Note 8 for additional information regarding the terms, conversion provisions, maturities and carrying amounts of these notes.
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 three months ended August 31, 2026. See Note 9 for additional information regarding the sublease terms.
As of August 31, 2026 and 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. |