• Filing Date: 2017-10-16
  • Form Type: 10-Q
  • Description: Quarterly report
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7. NOTES PAYABLE
3 Months Ended
Aug. 31, 2017
Debt Disclosure [Abstract]  
7. NOTES PAYABLE

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. As of August 31, 2017, accrued interest totaling $167,009 is recorded in accrued interest. The interest is payable in either cash or in kind. The notes have been amended and restated and now have a maturity date of December 31, 2017 and are classified as current notes payable. The loan agreements require any stock issuances for cash be utilized to pay down the outstanding loan balance unless written consent is obtained from Alleghany Capital.