Right-of-Use Assets and Lease Liabilities

3 Months Ended

Aug. 31, 2025

Right-of-use Assets And Lease Liabilities

Right-of-Use Assets and Lease Liabilities

Note 5 – Right-of-Use Assets and Lease Liabilities

The Company leases real property from unrelated parties under leases that are classified as operating leases. The right-of-use assets for operating leases are included in right-of-use assets on the balance sheets, with the corresponding lease liability in liabilities. Lease expense is recognized on a straight-line basis over the lease term. Renewals and terminations are included in the calculation of right-of-use assets and lease liabilities when they are considered reasonably certain to be exercised. When the implicit rate is unknown, the incremental borrowing rate, based on the commencement date, is used to determine the present value of lease payments.

The following amounts related to leases were recorded in the balance sheets:

	August 31, 2025		May 31, 2025
Right-of-use asset	$	–	$	2,795
Less: Accumulated amortization		–		–
Right-of-use asset, net	$	–	$	2,795
		–
Lease liabilities – current	$	–	$	4,906
Lease liabilities – noncurrent		–		–
	$	–	$	4,906

The Company reimburses a related party for an office space operating lease under a month-to-month arrangement, payable at the discretion of management. See Note 10.

The Company’s total operating lease expenses were $11,059 and $18,248 during the three months ended August 31, 2025, and August 31, 2024, respectively.

See Note 10 for additional lease information.