Quarterly report pursuant to Section 13 or 15(d)

Notes Payable (Tables)

v3.22.4
Notes Payable (Tables)
6 Months Ended
Nov. 30, 2022
Notes Payable (Tables) [Line Items]  
Schedule of Debt [Table Text Block]
   

November 30, 2022

   

May 31, 2022

 

Debenture in the principal amount of $250,000 (the “Debenture 1”) dated December 1, 2021, which bears interest, payable quarterly commencing six months after issuance, at a rate of 15% per annum. Principal on Debenture 1 is due in two equal installments 18 months after issuance and at maturity on July 10, 2024. With the Debenture, the purchaser received warrants to purchase 75,758 shares of common stock at an exercise price of $1.65 per share of common stock. The Company shall make additional quarterly payments under Debenture 1 beginning 90 days after the end of its first fiscal quarter after January 10, 2025, and for the next five years, on an annual basis, equal to the greater of (a) 15% of the original principal amount, or (b) the purchaser’s pro rata portion of 5% of the distributions the Company receives as a result of the Quinn River Joint Venture during the prior fiscal year. The Company recorded a discount in the amount of $17,223 on Debenture 1. During the three and six months ended November 30, 2022 $1,667 and $3,333 of this discount was charged to operations, respectively. The Company recorded an original issue discount in the amount of $187,500 on Debenture 1. During the three and six months ended November 30, 2022, $18,145 and $36,290 of this original issue discount was charged to operations, respectively. During three and six months ended November 30, 2022, the Company accrued interest in the amounts of $9,375 and $18,750 on Debenture 1, respectively. During the three and six months ended November 30, 2022, the Company made interest payments in the amounts of $8,333 and $31,250, respectively.

  $ 250,000     $ 250,000  
                 

Debenture in the principal amount of $250,000 (the “Debenture 2”) dated December 21, 2021, which bears interest, payable quarterly commencing six months after issuance, at a rate of 15% per annum. Principal on Debenture 2 is due in two equal installments 18 months after issuance and at maturity on July 10, 2024. With the Debenture, the purchaser received warrants to purchase 75,758 shares of common stock at an exercise price of $1.65 per share of common stock. The Company shall make additional quarterly payments under Debenture 2 beginning 90 days after the end of its first fiscal quarter after January 10, 2025, and for the next five years, on an annual basis, equal to the greater of (a) 15% of the original principal amount, or (b) the purchaser’s pro rata portion of 5% of the distributions the Company receives as a result of the Quinn River Joint Venture during the prior fiscal year. The Company recorded a discount in the amount of $10,428 on Debenture 2. During the three and six months ended November 30, 2022, $1,009 and $2,018 of this discount was charged to operations, respectively. The Company recorded an original issue discount in the amount of $187,500 on Debenture 2. During the three and six months ended November 30, 2022, $18,145 and $36,290 of this original issue discount was charged to operations, respectively. During the three and six months ended November 30, 2022, the Company accrued interest in the amounts of $9,375 and $18,750 on Debenture 2, respectively. During the three and six months ended November 30, 2022, the Company made interest payments in the amounts of $8,333 and $29,167, respectively.

    250,000       250,000  

 

   

November 30, 2022

   

May 31, 2022

 

Debenture in the principal amount of $500,000 (the “Debenture 3”) dated December 21, 2021, which bears interest, payable quarterly commencing six months after issuance, at a rate of 15% per annum. Principal on Debenture 3 is due in two equal installments 18 months after issuance and at maturity on July 10, 2024. With the Debenture, the purchaser received warrants to purchase 151,516 shares of common stock at an exercise price of $1.65 per share of common stock. The Company shall make additional quarterly payments under Debenture 3 beginning 90 days after the end of its first fiscal quarter after January 10, 2025, and for the next five years, on an annual basis, equal to the greater of (a) 15% of the original principal amount, or (b) the purchaser’s pro rata portion of 5% of the distributions the Company receives as a result of the Quinn River Joint Venture during the prior fiscal year. The Company recorded a discount in the amount of $19,335 on Debenture 3. During the three and six months ended November 30, 2022, $1,871 and $3,742 of this discount was charged to operations, respectively. The Company recorded an original issue discount in the amount of $375,000 on Debenture 3. During the three and six months ended November 30, 2022, $36,290 and $72,581 of this original issue discount was charged to operations, respectively. During the three and six months ended November 30, 2022, the Company accrued interest in the amounts of $18,750 and $37,500 on Debenture 3, respectively. During the three and six months ended November 30, 2022, the Company made interest payments in the amounts of $16,667 and $58,125, respectively.

    500,000       500,000  
                 

Debenture in the principal amount of $500,000 (the “Debenture 4”) dated January 4, 2022, which bears interest, payable quarterly commencing six months after issuance, at a rate of 15% per annum. Principal on Debenture 4 is due in two equal installments 18 months after issuance and at maturity on July 10, 2024. With the Debenture, the purchaser received warrants to purchase 151,516 shares of common stock at an exercise price of $1.65 per share of common stock. The Company shall make additional quarterly payments under Debenture 4 beginning 90 days after the end of its first fiscal quarter after January 10, 2025, and for the next five years, on an annual basis, equal to the greater of (a) 15% of the original principal amount, or (b) the purchaser’s pro rata portion of 5% of the distributions the Company receives as a result of the Quinn River Joint Venture during the prior fiscal year. The Company recorded a discount in the amount of $17,154 on Debenture 4. During the three and six months ended November 30, 2022, $1,715 and $3,431 of this discount was charged to operations, respectively. The Company recorded an original issue discount in the amount of $375,000 on Debenture 4. During the three and six months ended November 30, 2022, $37,500 and $75,000 of this original issue discount was charged to operations, respectively. During the three and six months ended November 30, 2022, the Company accrued interest in the amounts of $18,750 and $37,500 on Debenture 4, respectively. During the three and six months ended November 30, 2022, the Company made interest payments in the amounts of $16,667 and $55,417, respectively.

 

 

500,000

 

 

 

500,000

 

 

   

November 30, 2022

   

May 31, 2022

 

Debenture in the principal amount of $500,000 (the “Debenture 5”) dated January 4, 2022, which bears interest, payable quarterly commencing six months after issuance, at a rate of 15% per annum. Principal on Debenture 5 is due in two equal installments 18 months after issuance and at maturity on July 10, 2024. With the Debenture, the purchaser received warrants to purchase 151,516 shares of common stock at an exercise price of $1.65 per share of common stock. The Company shall make additional quarterly payments under Debenture 5 beginning 90 days after the end of its first fiscal quarter after January 10, 2025, and for the next five years, on an annual basis, equal to the greater of (a) 15% of the original principal amount, or (b) the purchaser’s pro rata portion of 5% of the distributions the Company receives as a result of the Quinn River Joint Venture during the prior fiscal year. The Company recorded a discount in the amount of $17,154 on Debenture 5. During the three and six months ended November 30, 2022, $1,715 and $3,431 of this discount was charged to operations, respectively. The Company recorded an original issue discount in the amount of $375,000 on Debenture 5. During the three and six months ended November 30, 2022, $37,500 and $75,000 of this original issue discount was charged to operations, respectively. During the three and six months ended November 30, 2022, the Company accrued interest in the amounts of $18,750 and $37,500 on Debenture 5, respectively. During the three and six months ended November 30, 2022, the Company made interest payments in the amounts of $16,667 and $55,417, respectively.

    500,000       500,000  
                 

Debenture in the principal amount of $500,000 (the “Debenture 6”) dated January 4, 2022, which bears interest, payable quarterly commencing six months after issuance, at a rate of 15% per annum. Principal on Debenture 6 is due in two equal installments 18 months after issuance and at maturity on July 10, 2024. With the Debenture, the purchaser received warrants to purchase 151,516 shares of common stock at an exercise price of $1.65 per share of common stock. The Company shall make additional quarterly payments under Debenture 6 beginning 90 days after the end of its first fiscal quarter after January 10, 2025, and for the next five years, on an annual basis, equal to the greater of (a) 15% of the original principal amount, or (b) the purchaser’s pro rata portion of 5% of the distributions the Company receives as a result of the Quinn River Joint Venture during the prior fiscal year. The Company recorded a discount in the amount of $17,154 on Debenture 6. During the three and six months ended November 30, 2022, $1,715 and $3,431 of this discount was charged to operations, respectively. The Company recorded an original issue discount in the amount of $375,000 on Debenture 6. During the three and six months ended November 30, 2022, $37,500 and $75,000 of this original issue discount was charged to operations, respectively. During the three and six months ended November 30, 2022, the Company accrued interest in the amounts of $18,750 and $37,500 on Debenture 6, respectively. During the three and six months ended November 30, 2022, the Company made interest payments in the amounts of $16,667 and $55,714, respectively.

    500,000       500,000  
                 

Total

  $ 2,500,000     $ 2,500,000  

Original Issue Discount

    1,875,000       1,875,000  

Notes Payable, Gross

    4,375,000       4,375,000  

Less: Discount

    (1,291,887

)

    (1,681,434

)

Notes Payable, Net of Discount

  $ 3,083,113     $ 2,693,566  

 

Schedule of Maturities of Long-Term Debt [Table Text Block]

2023

 

$

1,650,000

 

2024

 

 

5,003,051

 

2025

 

 

4,128,051

 

2026

 

 

375,000

 

2027

 

 

1,125,000

 

Thereafter

 

 

-

 

Total

 

$

12,281,102

 

 

Notes Payable, Other Payables [Member]  
Notes Payable (Tables) [Line Items]  
Schedule of Amortization of Debt Discount [Table Text Block]

Discounts on notes payable amortized to interest expense – 3 months ended November 30, 2022 and 2021, respectively

  $ 194,773     $ -  

 

Discounts on notes payable amortized to interest expense – 6 months ended November 30, 2022 and 2021, respectively

  $ 389,547     $ -