Notes and Advances Payable to Related Parties Disclosure |
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| Notes and Advances Payable to Related Parties Disclosure | NOTE 3 - NOTES AND ADVANCES DUE TO RELATED PARTIES
The tables below summarize the loans and advances due and payable to related parties as at February 28, 2026 and May 31, 2025:
(1) Related Party Loans Payable
As of February 28, 2026, the Company owed a total of $104,045 under 6% notes payable due to related parties (May 31, 2025 - $98,923), of which $24,702 was associated with interest accrued on the principal balances owed under the notes payable (May 31, 2025 - $20,039).
As of February 28, 2026, the Company owed a total of $664,952 under 10% notes payable due to related parties (May 31, 2025 - $360,049), of which $87,984 was associated with interest accrued on the principal balances owed under the notes payable (May 31, 2025 - $48,267).
Notes payable with Mr. Richard Jeffs
During the nine months ended February 28, 2026, the Company borrowed $200,000 from Mr. Richard Jeffs under a unsecured credit line, which allows the Company to draw up to $200,000 at 10% per annum and is payable on demand.
As of February 28, 2026, the Company owed a total of $310,908 (May 31, 2025 - $94,253) to Mr. Richard Jeffs, a significant shareholder of the Company and the father of the Company’s CEO and President, Mr. David Jeffs. A total of $70,340 (including accrued interest of $15,997) was borrowed under unsecured notes payable, which accrue interest at a rate of 6% per annum, compounded monthly, and are due on demand. The remaining amount of $240,568 was borrowed under unsecured credit lines, which allow the Company to draw up to CAD$100,000 and up to $200,000 at 10% per annum, compounded monthly and payable on demand.
During the nine months ended February 28, 2026, the Company recorded $15,790 in interest on the notes payable and the funds borrowed under the credit lines with Mr. Richard Jeffs (February 28, 2025 - $2,867).
Notes payable with Mr. David Jeffs
As of February 28, 2026, the Company owed a total of $51,386 under loan agreements with Mr. David Jeffs, the Company’s CEO, director, and a significant shareholder (May 31, 2025 - $47,615). The loans accrue 10% annual interest, compounded monthly, are unsecured, and are payable on demand. The $30,000 loan was payable on April 24, 2023, and is therefore in default as of the date of these condensed consolidated financial statements. During the nine months ended February 28, 2026, the Company recorded $3,679 in interest on the principal (February 28, 2025 - $3,274).
As of February 28, 2026, the Company owed a total of $33,705 under a loan agreement with a company of which Mr. David Jeffs is a director (May 31, 2025 - $32,229). The loan bears interest at 6% per annum compounded monthly, is unsecured, and is payable on demand. During the nine months ended February 28, 2026, the Company recorded $1,476 in interest on the principal (February 28, 2025 - $1,390).
Notes payable with Mr. Amir Vahabzadeh
As of February 28, 2026, the Company owed a total of $199,626 under loan agreements with Mr. Vahabzadeh, a director and a significant shareholder (May 31, 2025 - $185,297). The loans are unsecured and carry a 10% annual interest rate, compounded monthly. A $30,000 note payable included in the total due was payable on April 24, 2023, and, as of the date of these condensed consolidated financial statements, is in default. The remaining notes payable, totaling $130,000, are payable on demand. During the nine months ended February 28, 2026, the Company recorded $14,329 in interest on the principal (February 28, 2025 - $9,512).
Notes payable with a significant shareholder
As of February 28, 2026, the Company owed $78,382 (May 31, 2025 - $72,756) under unsecured notes payable with the Company’s significant shareholder. The loans are unsecured and carry a 10% annual interest rate, compounded monthly. During the nine months ended February 28, 2026, the Company recorded $5,626 in interest on the principal (February 28, 2025 - $5,093).
Notes payable with Mrs. Susan Jeffs
During the nine months ended February 28, 2026, the Company borrowed $14,248 from Mrs. Susan Jeffs, mother of Mr. David Jeffs, under an unsecured credit line, which allows the Company to draw up to CAD$100,000, and a further $50,000 under an unsecured credit line, which allows the Company to draw up to $100,000. Both credit lines accumulate interest at 10% per annum and are payable on demand.
As of February 28, 2026, the Company owed $94,990 (May 31, 2025 - $26,822) under unsecured credit lines with Mrs. Susan Jeffs. During the nine months ended February 28, 2026, the Company recorded $3,250 in interest on the principal (February 28, 2025 - $21).
(2) Advances Payable
As of February 28, 2026, the Company owed a total of $10,995 (May 31, 2025 - $10,902) for an advance the Company received in its fiscal 2020 year from an entity controlled by Mr. David Jeffs. The advance is non-interest-bearing, unsecured, and payable on demand. |
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