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Notes Payable
 3 Months Ended
Aug. 31, 2024
Debt Disclosure [Abstract]  
Notes Payable

Note 8 – 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 principal and interest 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, on the accompanying unaudited consolidated financial statements, and paid interest of $0 and $562, during the three months ended August 31, 2024 and 2023, respectively.

 

As of August 31, 2024 and May 31, 2024, the outstanding balance of the loan amounted to $144,257 and $146,594, respectively.

 

The amounts of loan payments due in the next fiscal year ended August 31, are as follows:

 

   
   Total
2025  $144,257 
Total  $144,257