Note 23 – Commitments and Contingencies

Legal Proceedings

On October 6, 2026 the Company issued a formal demand for repayment of the loan receivable described in Note 8 and has not received a response; the Company is evaluating enforcement proceedings. The conditions underlying the demand existed at August 31, 2026 and were considered in measuring the allowance for credit losses at that date. There were no other new litigation, claims or assessments during the quarter. See Note 24 regarding the Edmonton Oilers advertising and promotional agreement and the settlement of a carbon credit purchase agreement.

Operating Leases

The Company has entered into an operating lease for office space in Calgary, Alberta commencing on July 1, 2025 with a term of five years, expiring on June 30, 2030. Monthly payments, which are denominated in Canadian dollars and include the tenant’s proportionate share of occupancy costs, are CAD $14,179 to June 2027, CAD $14,733 to June 2029 and CAD $15,288 thereafter. The Company subleases part of the premises to a related party (Note 21); the head lease and the sublease are accounted for separately and the right-of-use asset and lease liabilities remain recognized. Lease right-of-use assets and lease liabilities are recognized at the commencement of the lease based on the present value of lease payments over the lease term using the Company’s estimated incremental borrowing rate. Leases with an initial term of twelve months or less, including the Company’s New York and remote office arrangements and a Texas office arrangement at $105 per month under a one-year agreement, are not recorded on the balance sheet. The Company recognized total lease expense of approximately $29,800 for the three months ended August 31, 2026 (three months ended August 31, 2025: $67,578), including short-term lease costs.

Future minimum lease payments under operating leases that have initial noncancelable lease terms in excess of one year at August 31, 2026, translated at the closing rate, were as follows: