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Notes Payable
 3 Months Ended
Aug. 31, 2023
Debt Disclosure [Abstract]  
Notes Payable

Note 9 – Notes Payable

 

During the year ended May 31, 2020, a commercial bank granted to the Company a loan (the “Loan”) in the amount of $150,000, which is administered under the authority and regulations of the U.S. Small Business Administration pursuant to the Economic Injury Disaster Loan Program (the “EIDL”) of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The Loan, which is evidenced by a note dated May 18, 2020, bears interest at an annual rate of 3.75% and is payable in installments of $731 per month, beginning May 18, 2021 until May 13, 2050. The Company has to maintain a hazard insurance policy including fire, lightning, and extended coverage on all items used to secure this loan to at least 80% of the insurable value. Proceeds from loans granted under the CARES Act are intended to be used for payroll, costs to continue employee group health care benefits, rent, utilities, and certain other qualified costs (collectively, “qualifying expenses”). The Company used the loan proceeds for qualifying expenses. During the year ended May 31, 2022, the Company received additional $10,000 of borrowings under the program. The Company received a loan forgiveness for $10,000 during the year ended May 31, 2022. The Company recorded accrued interest of $10,904 and $10,343, as of August 31, 2023 and May 31, 2023, respectively.

 

During the three months ended August 31, 2023 the Company continued to pay its insurance financing loan, which had a total principal of $53,337 for the general and excess liability insurance policies. The loan has a finance charge of $3,164 and is payable in 10 monthly installments of $5,650 each beginning November 1, 2022. Through the three months ended August 31, 2023, nine installments have been paid and the outstanding balance of the loan amounted to $5,334.

        

Notes Payable as of

  August 31,
2023		   May 31,
2023		 
Insurance Financing  $5,334   $21,335 
Financing Charges   -    1,253 
Economic Injury Disaster Loan Program (EIDL)   150,000    150,000 
Total   155,334    172,588 
Less: Current portion   (155,334)   (172,588)
Non-current portion  $-   $-