EQUITY METHOD INVESTMENTS

12 Months Ended

May 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

EQUITY METHOD INVESTMENTS

NOTE 16 – EQUITY METHOD INVESTMENTS

Cat Creek Holdings

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.

Summarized Financial Information

The following table provides summarized financial information for the Company’s ownership interest in Cat Creek accounted for under the equity method for the May 31, 2022 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 May 31, 2022
Current Assets	$	343,188
Non-current Assets		926,464
Total Assets	$	1,269,652
Current Liabilities	$	154,384
Non-current Liabilities		425,860
Shareholders’ equity		689,408
Total Liabilities and Shareholders’ Equity	$	1,269,652

Results of Operations:	Year Ended May 31, 2022
Revenue	$	856,935
Gross Profit		180,769
Net Income	$	30,842

Olfert 11-4 Holdings

The following table provides summarized financial information for the Company’s ownership interest in Olfert #11-4 Holding accounted for under the equity method for the May 31, 2022 period presented and has been compiled from respective company financial statements and reflects certain historical adjustments. Results of operations are excluded for periods prior to acquisition. See Note 9 for further information.

Balance Sheet:	As of May 31, 2022
Current Assets	$	996
Non-current Assets		1,143,757
Total Assets	$	1,144,753
Shareholders’ equity		1,144,753
Total Liabilities and Shareholders’ Equity	$	1,144,753

Results of Operations:	Year Ended May 31, 2022
Revenue	$	-
Gross Profit		-
Net Loss	$	(4	)