Item 1. Legal Proceedings
ITEM
1. LEGAL PROCEEDINGS
On
September 24, 2024, a prospective lender filed a claim against the Company for an alleged breach of a non-binding term sheet made on
June 7, 2024. The Company and its counsel believe the claim is without merit however the courts have mandated mediation. After consideration
of business factors the parties executed a settlement agreement in June 2025 with the Company agreeing to pay $65,000 with no admission
of wrong doing. The Company accrued the $65,000 at May 31, 2025.
ITEM
1A. RISK FACTORS
This
item is not applicable to smaller reporting companies.
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