NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
(UNAUDITED)
|
NOTE
1 – ORGANIZATION AND DESCRIPTION OF BUSINESS
Company
Purchase of Stock of SORC
Pursuant
to a Securities Purchase Agreement dated December 31, 2020 (the Purchase Agreement), by and among the Company, Alleghany
Corporation (Alleghany), Stranded Oil Resources Corporation, a wholly-owned subsidiary of Alleghany (SORC),
and SORC Holdings LLC, a wholly-owned subsidiary of the Company (Buyer or SORC Holding), Buyer purchased
all of the issued and outstanding shares of SORC stock (the SORC Shares) in a transaction that closed on December 31, 2020
(the SORC Purchase Transaction). As consideration for the SORC Shares, Buyer paid Alleghany $72,678 comprised of $55,000
purchase price plus a $17,678 working capital adjustment calculated in accordance with the Purchase Agreement. The Company agreed to
pay to Alleghany a revenue royalty of 5.0% of the Companys future revenues and net profits relating to oil, gas, gas liquids and
all other hydrocarbons, subject to certain adjustments, for a period of seven years after the closing. The Purchase Agreement provides
for customary adjustments to the purchase price based on the effective date of December 31, 2020.
Further,
pursuant to the SORC Purchase Agreement, Laredo and Alleghany entered into a Consulting Agreement dated as of December 31, 2020
(the Consulting Agreement), pursuant to which Seller agreed to pay an aggregate of approximately $1.245 million
during calendar year 2021 in consideration of Laredo causing certain individuals, including Mark See, Laredos Chief Executive
Officer and Chairman, and Chris Lindsey, Laredos General Counsel and Secretary, to provide consulting services to Alleghany
(for a period of three years for Mr. See and one year for Mr. Lindsey).
The
Company believes that entering the SORC Purchase Agreement was advantageous as it simplified in a timely manner the unwinding of the
Agreements (defined below) entered into on June 14, 2011 and allowed the Company to acquire vehicles and oil field assets that can be
utilized in future oil recovery projects.
As
the Company now owns SORC, the Company no longer receives any payments from SORC (including any Royalty payable by SORC to the
Company) outlined in the Agreements with SORC enumerated in the General section below. As a result, except for the
payments to be made in calendar year 2021 to Laredo under the Consulting Agreement, the Company will no longer receive management
fee revenue from Alleghany or reimbursement from Alleghany for the monthly expenses of its employees, which fees and reimbursements
were effectively all of the Companys revenues prior to the closing of the SORC Purchase Transaction.
General
– Company Business during the Reporting Period
On
June 14, 2011, the Company entered into agreements with SORC to seek recovery of stranded crude oil from mature, declining oil fields
by using the enhanced oil recovery (EOR) method known as Underground Gravity Drainage (UGD). Such agreements
include license agreements, management services agreements, and other agreements (collectively the Agreements). In connection
with the SORC Purchase Transaction, SORCs obligations under the Agreements terminated effective as of December 31, 2020. A description
of the Agreements effective during the three- and nine-month periods ended February 28, 2021 follows.
The
Agreements stipulate that the Company and Mark See, the Companys Chairman and Chief Executive Officer (CEO),
will provide to SORC, management services and expertise through exclusive, perpetual license agreements and a management services
agreement (the Management Service Agreement) with SORC. As consideration for the licenses to SORC, the Company will
receive an interest in SORCs net profits as defined in the Agreements (the Royalty). The Management Service
Agreement (MSA) outlines that the Company will provide the services of various employees (Service Employees),
including Mark See, in exchange for monthly and quarterly management service fees. The monthly management service fees provide
funding for the salaries, benefit
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
(UNAUDITED)
|
NOTE
1 – ORGANIZATION AND DESCRIPTION OF BUSINESS (continued)
costs,
and FICA taxes for the Service Employees identified in the MSA. SORC remits payment for the monthly management fees in advance
and is payable on the first day of each calendar month. The quarterly management fee totals $137,500 and is paid on the first
day of each calendar quarter, with the last payment being received October 1, 2020. In addition, prior to December 31, 2020, SORC
reimbursed the Company for monthly expenses incurred by Service Employees in connection with their rendition of services under
the MSA. The Company could also submit written requests to SORC for additional funding for payment of the Companys operating
costs and expenses, which SORC, in its sole and absolute discretion, determined whether or not to fund.
As
consideration for the licenses to SORC, the Company was to receive a 19.49% interest in SORC net profits as defined in the SORC License
Agreement (the SORC License Agreement). Under the SORC License Agreement, the Company agreed that a portion of the Royalty
equal to at least 2.25% of the net profits (Incentive Royalty) be used to fund a long-term incentive plan for the benefit
of its employees, as determined by the Companys board of directors. On October 11, 2012, the Laredo Royalty Incentive Plan (the
Plan) was approved and adopted by the Board and the Incentive Royalty was assigned by the Company to Laredo Royalty Incentive
Plan, LLC, a special purpose Delaware limited liability company and wholly owned subsidiary of the Company formed to carry out the purposes
of the Plan (the Plan Entity). Through February 28, 2021 the subsidiary has received no distributions from SORC. As a result
of the assignment of the Incentive Royalty to the Plan Entity, the Royalty retained by the Company has been reduced from 19.49% to 17.24%
subject to reduction to 15% under certain events stipulated in the SORC License Agreement. Additionally, in the event of a SORC initial
public offering or certain other defined corporate events, the Company was to receive 17.24%, subject to reduction to 15% under the SORC
License Agreement, of the SORC common equity or proceeds emanating from the event in exchange for termination of the Royalty. Under certain
circumstances regarding termination of exclusivity and license terminations, the Royalty could be reduced to 7.25%. If any Incentive
Royalty is funded as a result of those conditions being met, the Company may record compensation expense for the fair value of the Incentive
Royalty, once all pertinent factors are known and considered probable. As the Royalty is no longer payable by SORC to the Company as
a result of the SORC Purchase Transaction referenced above, there are also no longer any Incentive Royalties payable pursuant to the
Plan.
Prior
to the Company receiving any Royalty cash distributions from SORC, all SORC preferred share accrued dividends would have been required
to be paid (in excess of $200 million as of December 31, 2020), preferred shares redeemed (in excess of $270 million as of December 31,
2020), and debt retired to comply with any loan agreements. No Royalties have been received by the Company. As referenced above, as a
result of the SORC Purchase Transaction, no Royalties will be paid to the Company by SORC in the future.
Basic
and Diluted Loss per Share
The
Companys basic earnings per share (EPS) amounts have been computed based on the weighted-average number of
shares of common stock outstanding for the period. As the Company realized a net loss for the nine-month period ended February
28, 2021 and the three- and nine-month periods ended February 29, 2020, no potentially dilutive securities were included in the
calculation of diluted loss per share as their impact would have been anti-dilutive. For the three-month period ended February
28, 2021, all options and warrants potentially convertible into common equivalent shares are considered antidilutive due to the
exercise prices of the instruments and have been excluded in the calculation of diluted earnings per share. Diluted net income
(loss) per share is computed by dividing the net income (loss) by the weighted-average number of common and dilutive common equivalent
shares outstanding during the period.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
(UNAUDITED)
|
NOTE
2 – GOING CONCERN
These
financial statements have been prepared on a going concern basis. The Company has routinely incurred losses since inception, resulting
in an accumulated deficit and historically has been dependent upon one customer for its revenue. The Company entered into the
Agreements with SORC to fund operations and to provide working capital. However, as a result of the SORC Purchase Transaction,
except for payments to be made in calendar year 2021 to Laredo under the Consulting Agreement, Alleghany will no longer fund operations
or provide working capital to the Company or SORC. There is no assurance that in the future such financing will be available to
meet the Companys needs.
Management
has undertaken steps as part of a plan to improve operations with the goal of sustaining operations for the next twelve months
and beyond. These steps include (a) providing services and expertise to optimize operations; and (b) controlling overhead and
expenses. In that regard, the Company has worked to attract and retain key personnel with significant experience in the industry
to enhance the quality and breadth of the services it provides. At the same time, in an effort to control costs, the Company has
required a number of its personnel to multi-task and cover a wider range of responsibilities in an effort to minimize headcount.
There can be no assurance that the Company can successfully accomplish these steps and it is uncertain that the Company will achieve
a profitable level of operations and obtain additional financing. There can be no assurance that any additional financing will
be available to the Company on satisfactory terms and conditions, if at all.
The
accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability
and classification of assets or the amounts and classifications of liabilities that may result from the possible inability of
the Company to continue as a going concern.
NOTE
3 – SIGNIFICANT ACCOUNTING POLICIES
Principles
of Consolidation – The accompanying consolidated financial statements include the accounts of Laredo Oil and its subsidiaries
after elimination of intercompany balances and transactions.
Equity
Method Investment - Investments classified as equity method consist of investments in companies in which the Company
is able to exercise significant influence but not control. Under the equity method of accounting, the investment is
initially recorded at cost, then the Companys proportional share of investees underlying net income or loss is recorded
as a component of other income with a corresponding increase or decrease to the carrying value of the investment.
Distributions received from the investee reduce the Companys carrying value of the investment. These investments are
evaluated for impairment if events or circumstances arise that indicate that the carrying amount of such assets may not be recoverable.
The Company has elected to record its portion of the equity method loss with a two-month lag. Accordingly, the financial results
for the equity investment are reported through December 31, 2020. No impairments were recognized for the Companys equity
method investment during the quarter ended February 28, 2021. See Note 12.
Property
and Equipment – The carrying value of the Companys property and equipment represents the cost incurred to acquire
the property and equipment, net of any impairments. For business combinations, property and equipment cost is based on the fair
values at the acquisition date.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
(UNAUDITED)
|
NOTE
4 – ACQUISITION OF SORC
Purchase
Price Allocation
We
have accounted for the Acquisition of SORC as a business combination using the acquisition method. The following table represents the
allocation of the total purchase price of SORC to the identifiable assets acquired and the liabilities assumed based on the fair values
as of the acquisition date.
|
|
Preliminary Purchase Price Allocation
|
|
Consideration:
|
|
|
|
Cash
|
|
$
|
55,000
|
|
Working capital adjustment
|
|
|
17,678
|
|
Total Consideration
|
|
$
|
72,678
|
|
|
|
|
|
|
Fair Value of Assets Acquired:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
448,457
|
|
Prepaid expenses and other assets
|
|
|
31,022
|
|
Property and equipment
|
|
|
447,176
|
|
Amounts attributable to assets acquired
|
|
$
|
926,655
|
|
|
|
|
|
|
Fair Value of Liabilities Assumed:
|
|
|
|
|
Current Liabilities
|
|
$
|
436,076
|
|
Amounts attributable to liabilities assumed
|
|
$
|
436,076
|
|
|
|
|
|
|
Total identifiable net asset
|
|
$
|
417,901
|
|
|
|
|
|
|
Bargain purchase gain
|
|
$
|
417,901
|
|
Financial
Information
Pursuant
to Topic 2, section 2010 of the SEC financial reporting manual, the Company evaluated the business combination. Prior to the acquisition
by the Company, SORC sold all operating assets, terminated all employees and no longer maintained any of the business processes
that previously existed. Accordingly, the Company has determined the transaction is considered an asset acquisition only. As a
result, historical financial statements are not considered relevant to the ongoing operations and are not required.
In
connection with the acquisition, the Company received tangible assets which had previously been written off by the Seller. This previous
reduction in asset values in combination with the Sellers desire to close the transaction on an accelerated basis enabled the
Company to obtain the assets at a lower price resulting in the recognition of a bargain purchase gain.
For
the period from December 31, 2020 to February 28, 2021, there are no revenues and $4,860 interest expense recorded related to
the debt discount amortization.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
(UNAUDITED)
|
NOTE
5 – REVENUE RECOGNITION
Monthly
Management Fee
The
Company generates monthly management revenues from fees for labor and benefit costs. The Company recognizes revenue for these services
in the month the labor and benefits are received by the customer. Monthly management fee revenues of $1,046,390 and $3,694,931 were recognized
for the three months and nine months ended February 28, 2021, respectively. Monthly management fee revenues of $2,048,216 and $5,895,121
were recognized for the three months and nine months ended February 29, 2020, respectively.
Quarterly
Management Fee
The
Company generates management fee revenue each quarter. The Company recognizes revenue over the applicable quarter on a straight-line
basis. Pursuant to the SORC Purchase Agreement, the quarterly management fee has been terminated effective December 31, 2020 and
no additional quarterly fees have been recognized. Prior to December 31, 2020 the management fee is billed quarterly in advance.
Quarterly management fees recognized for three and nine months ended February 28, 2021 were $45,833 and $320,833. Quarterly management
fees recognized for three and nine months ended February 29, 2020 were $137,500 and $412,500, respectively.
Other Revenue
The Company and Alleghany have entered into a
Consulting agreement (see Note 1), where Alleghany is obligated to pay the Company a total of $1,144,471, in quarterly payments
beginning January 1, 2021, in consideration for making certain individuals available for their advice, assistance and support in
connection with the oil and gas industry and any questions, issues or matters arising from Alleghany's previous ownership of SORC.
Two individuals are committed for a one-year period ending December 31, 2021, and one individual is committed for a three year
period ending December 31, 2023. The Company's management believes that any work necessary under this obligation will in fact be
completed by December 31, 2021, and is recognizing revenue on a monthly basis over the year ended December 31, 2021. Unearned
revenue related to amounts received but not yet earned under this contract at February 28, 2021 totaled $95,373. In addition,
Alleghany paid the Company $100,000 on January 1, 2021, to be paid to an individual, with no further performance obligations. Other
Revenue for both the three and nine months ended February 28, 2021 was $290.745.
NOTE
6 – RECENT AND ADOPTED ACCOUNTING STANDARDS
The
Company has reviewed recently issued accounting standards and plans to adopt those that are applicable to it. It does not expect
the adoption of those standards to have a material impact on its financial position, results of operations, or cash flows.
NOTE
7 – FAIR VALUE OF FINANCIAL INSTRUMENTS
The
Companys financial instruments as defined by Financial Accounting Standards Board (FASB) Accounting Standards
Codification (ASC) 825-10-50, Financial Instruments, include cash and cash equivalents, equity method investments,
accounts payable, accrued liabilities and notes payable. The equity method investments approximate fair value as a result of limited
activity by the investee since formation. All other instruments are accounted for on a historical cost basis, which, due to the
short maturity of these financial instruments, approximates fair value at February 28, 2021.
Based
on the borrowing rates currently available to the Company for loans with similar terms and maturities, the fair value of long-term
notes payable approximates the carrying value.
NOTE
8 – RELATED PARTY TRANSACTIONS
Transactions
between related parties are considered to be related party transactions even though they may not be given accounting recognition.
FASB ASC 850, Related Party Disclosures (FASB ASC 850) requires that transactions with related parties that
would make a difference in decision making shall be disclosed so that users of the financial statements can evaluate their significance.
Related party transactions typically occur within the context of the following relationships:
|
●
|
Affiliates
of the entity;
|
|
●
|
Entities
for which investments in their equity securities is typically accounted for under the equity method by the investing entity;
|
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
(UNAUDITED)
|
NOTE
8 – RELATED PARTY TRANSACTIONS (continued)
●
|
Trusts
for the benefit of employees;
|
●
|
Principal
owners of the entity and members of their immediate families;
|
●
|
Management
of the entity and members of their immediate families.
|
●
|
Other
parties that can significantly influence the management or operating policies of the transacting parties and can significantly
influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own
separate interests.
|
SORC
and Alleghany are considered related parties under FASB ASC 850. All management fee revenue reported by the Company for the three
and nine months ended February 28, 2021 and February 29, 2020 is generated from charges to SORC. All outstanding notes payable
at February 28, 2021 and May 31, 2020 are held by Alleghany Capital Corporation (Alleghany Capital), a wholly owned
subsidiary of Alleghany. See Note 9.
Subsequent
to the Companys purchase of 100% of SORCs stock on December 31, 2020, Alleghany and its subsidiaries are no longer a related
party.
NOTE
9 – STOCKHOLDERS DEFICIT
Share
Based Compensation
The
Black-Scholes option pricing model is used to estimate the fair value of options granted under our stock incentive plan.
Share
based compensation expense is fully recorded with respect to stock option awards outstanding. No share based compensation expense
was recorded for the three and nine month periods ended February 28, 2021 or February 29, 2020.
Stock
Options
No
option grants were made during the first, second and third quarters of fiscal years 2021 and 2020.
Restricted
Stock
No
restricted stock was granted during the first, second and third quarters of fiscal years 2021 or 2020.
Warrants
No
warrants were issued during the first three quarters of fiscal years 2021 or 2020. As of February 28, 2021, there were 5,374,501 warrants
remaining to be exercised at a price of $0.70 per share to Sunrise Securities Corporation to satisfy the finders fee obligation
associated with the Companys original transaction with Alleghany in June 2011. The warrants will expire June 14, 2021 and are
currently exercisable.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
(UNAUDITED)
|
|
NOTE
10 – NOTES PAYABLE
Alleghany
Notes
During the fiscal year ended May 31, 2011, the Company
entered into two Loan Agreements with Alleghany Capital for a combined available borrowing limit of $350,000. The notes accrue interest
on the outstanding principal of $350,000 at the rate of 6% per annum, with a due date of December 31, 2020 as of May 31, 2020.
In
connection with the SORC Purchase Transaction, the notes were amended, restated and consolidated into one note including all accrued
interest through December 31, 2020, the date of the transaction, for a total of $631,434 (the Senior Consolidated Note)
with a maturity date of June 30, 2022. The Senior Consolidated Note requires any stock issuances for cash be utilized to pay down the
outstanding loan balance unless written consent is obtained from Alleghany. As part of the SORC Purchase Transaction, the Company agreed
to secure repayment of the Senior Consolidated Note with certain equipment and to reduce the note balance with any proceeds received
from any sales of such equipment. The note bears no interest until January 1, 2022 whereupon the interest rate increases to 5% per annum
through maturity. Principal with all accrued and unpaid interest is due at maturity. In connection with the SORC acquisition purchase
price allocation, the Company recorded a debt discount totaling $30,068 in recognition of imputed interest on the Senior Consolidated
Note, to be amortized over the first year of the note term. The Senior Consolidated Note is recorded as a long-term note payable, net
of debt discount as of February 28, 2021.
Paycheck
Protection Program Loan
|
|
February 28,
|
|
|
May 31,
|
|
|
|
2021
|
|
|
2020
|
|
Total PPP Loan
|
|
$
|
2,467,311
|
|
|
$
|
1,233,656
|
|
Less amounts classified as current
|
|
|
273,596
|
|
|
|
473,778
|
|
|
|
|
|
|
|
|
|
|
PPP loan, excluding current portion
|
|
$
|
2,193,715
|
|
|
$
|
759,878
|
|
On
April 28, 2020, the Company entered into a Note (the Note) with IBERIABANK for $1,233,656 pursuant to the terms
of the Paycheck Protection Program (PPP) authorized by the Coronavirus Aid, Relief, and Economic Security (CARES)
Act (CARES Act) In June 2020, the Flexibility Act which amended the CARES Act was signed into law. Pursuant to the
Flexibility Act, the Note continues to accrue interest on the outstanding principal sum at the rate of 1% per annum. In addition,
the initial two year Note term has been extended to five years through mutual agreement with IBERIABANK as allowed under Flexibility
Act provisions.
In
February, 2021, the Company drew an additional $1,233,655 under the PPP Second Draw Loans, bringing the total principal borrowed
to $2,467,311. The additional draw is under the same terms and conditions as the first PPP loan.
The
Flexibility Act also provides that if a borrower does not apply for forgiveness of a loan within 10 months after the last
day of the measurement period (covered period), the PPP loan is no longer deferred and the borrower must
begin paying principal and interest. In addition, the Flexibility Act extended the length of the covered period from eight weeks
to 24 weeks from receipt of proceeds, while allowing borrowers that received PPP loans before June 5, 2020 to determine, at their
sole discretion, a covered period of either 8 weeks or 24 weeks.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
(UNAUDITED)
|
|
NOTE
10 – NOTES PAYABLE (continued)
No
interest or principal will be due during the deferral period, although interest will continue to accrue over this period. As of
February 28, 2021, interest totaling $11,256 is recorded in accrued interest on the accompanying balance sheets. After the deferral
period and after taking into account any loan forgiveness applicable to the Note, any remaining principal and accrued interest
will be payable in substantially equal monthly installments over the remaining term of the Note.
The
Company did not provide any collateral or guarantees for the loan, nor did the Company pay any facility charge to obtain the loan.
The Note provides for customary events of default, including, among others, those relating to failure to make payment, bankruptcy,
breaches of representations and material adverse effects. The Company may prepay the Note at any time without payment of any penalty
or premium.
No
assurance can be given that the Company will obtain forgiveness of the loan, in whole or in part. At this time, the Company has
not yet applied for or received loan forgiveness and therefore have treated the PPP Note as debt. If all or a portion of a loan
is ultimately forgiven, the Company plans to record income from the extinguishment of its loan obligation when it is legally released
from being the primary obligor in accordance with ASC 405-20-40-1.
NOTE
11 – EMPLOYEE SEPARATIONS
The
Company establishes obligations for expected termination benefits provided under existing agreements with a former or inactive
employee after employment but before retirement. These benefits generally include severance payments and medical continuation
coverage. During the first quarter of 2021, the Company continued to reduce expenses in response to the impact of the COVID-19
pandemic. During third quarter of 2021 and in connection with the SORC purchase agreement and termination of the Alleghany Agreements,
the Company continued to reduce expenses. These activities included further reductions in its workforce. The Company incurred
severance and related charges totaling $222,023 during the first quarter 2021 and $284,113 during the third quarter 2021. As of
February 28, 2021, the Company has no remaining severance accrual included in accrued payroll liabilities. There were no similar
accruals as of May 31, 2020.
NOTE
12 – EQUITY METHOD INVESTMENT
On
June 30, 2020, Laredo Oil, Inc. (Laredo) entered into a Limited Liability Company Agreement (the LLC Agreement)
of Cat Creek Holdings LLC (Cat Creek), a Montana limited liability company formed as a joint venture for the purchase
of certain oil and gas properties in the Cat Creek Field in Petroleum and Garfield Counties in the State of Montana (the Cat
Creek Properties). In accordance with the LLC Agreement, Laredo invested $448,900 in Cat Creek for 50% of the ownership
interests in Cat Creek using cash on hand. Each of Lipson Investments LLC and Viper Oil & Gas, LLC, the other two members
of Cat Creek, have ownership interests in Cat Creek of 25% in consideration of their respective investments of $224,450. Cat Creek
will be managed by a Board of Directors consisting of four directors, two of which shall be designated by Laredo.
Cat
Creek entered into an Asset Purchase and Sale Agreement (the Purchase Agreement) with Carrell Oil Company (Seller)
on July 1, 2020 for the purchase of the Cat Creek Properties from Seller. On September 21, 2020, upon resolving the purchase contingency
under the Purchase Agreement, the Seller received consideration of $400,000, taking into effect certain adjustments resulting
from pre- and post-effective date revenue, expense, and allocations.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
(UNAUDITED)
|
|
NOTE
12 – EQUITY METHOD INVESTMENT (continued)
Summarized
Financial Information
The
following table provides summarized financial information for the Companys ownership interest in Cat Creek accounted for
under the equity method for the February 28, 2021 period presented and has been compiled from respective company financial
statements, reflects certain historical adjustments, and is reported on a two-month lag. Results of operations are excluded for
periods prior to acquisition.
Balance Sheet:
|
|
As of February 28, 2021
|
|
Current Assets
|
|
$
|
179,473
|
|
Non-current Assets
|
|
|
601,878
|
|
Total Assets
|
|
$
|
781,351
|
|
|
|
|
|
|
Current Liabilities
|
|
$
|
14,384
|
|
Non-current Liabilities
|
|
|
87,733
|
|
Shareholders equity
|
|
|
679,234
|
|
Total Liabilities and Shareholders Equity
|
|
$
|
781,351
|
|
Results of Operations:
|
|
Three Months
Ended
February 28, 2021
|
|
|
Nine Months
Ended
February 28, 2021
|
|
Revenue
|
|
$
|
474,044
|
|
|
$
|
774,929
|
|
Gross Profit
|
|
|
236,258
|
|
|
|
383,319
|
|
Net Loss
|
|
$
|
(91,319
|
)
|
|
$
|
(218,566
|
)
|