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美国\n证券交易委员会

委员会

华盛顿,\nD.C. 20549

表格\n10-Q

x 季度\n报告根据证券交易\n1934年法案第13条或第15(d)条

截至\n2026年8月31日的季度

委员会\n文件编号 333-153168

\n \n \n \n \n

Laredo Oil, Inc.

(注册人章程中指定的全名)

\n \n \n \n \n \n \n \n \n

特拉华州		26-2435874
(注册或组织的州或其它司法管辖区)		(I.R.S.\n 雇主识别号码)

\n \n \n \n \n \n \n \n \n \n \n \n \n

2021 Guadalupe Street, Ste. 260

Austin,\n 德克萨斯州 78705

(主要执行办公室的地址) (邮政编码)

(512)\n 337-1199

(注册人的电话号码，包括地区代码)

检查是否发行人（1）在过去的12个月（或注册人需要提交此类报告的较短期间）内提交了根据《证券交易法》第13条或第15(d)条应提交的所有报告，以及（2）在过去90天内一直受到这些提交要求的约束。是 x 否\no

通过勾选方框表明注册人是否在前12个月（或注册人需要提交并发布这些文件的较短期间）内提交了根据规章S-T第405条（本章第232.405条）应提交的每个交互式数据文件。\n是 x 否 o

通过勾选方框表明注册人是否为大型加速提交者、加速提交者、非加速提交者、较小报告公司或新兴成长公司。请参见《证券交易法》第12b-2条中对“大型加速提交者”、“加速提交者”、“非加速提交者”、“较小报告公司”和“新兴成长公司”的定义。

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

大型\n 加速提交者	o	加速\n 提交者	o
非加速提交者	o	较小的\n 报告公司	x
		新兴\n 成长公司	o

如果为新兴成长公司，请通过勾选方框表明注册人是否选择不使用根据《证券交易法》第13(a)条提供的任何新修订的财务会计标准的延长过渡期。o

通过勾选方框表明注册人是否为壳公司（根据《证券交易法》第12b-2条定义）。是 o 否 x

表明每种发行人的普通股类别的已发行股份数量，以最新可行日期为准：截至2026年10月15日，有85,945,558股普通股已发行并流通。

第一部分\n 财务信息

项目 1。	经调整的合并财务报表	3
	截至2026年8月31日（未经审计）和2026年5月31日的经调整的合并资产负债表	4
	截至2026年8月31日及2025年三个月的合并损益表（未经审计）	5
	截至2026年8月31日及2025年三个月的合并股东权益变动表（未经审计）	6
	截至2026年8月31日及2025年三个月的合并现金流量表（未经审计）	7
	未审计的合并财务报表附注	8

项目2。	管理层讨论与分析	22

项目3。	关于市场风险的定量和定性披露	26

项目4。	控制与程序	26

第二部分其他信息

项目1。	法律诉讼	28

项目2。	未注册的股权销售	28

项目5。	其他信息	28

项目6。	附录	29

签名	30

项目\n1. 财务报表

以下未经审计的合并财务报表（“财务报表”）由Laredo Oil, Inc.（“公司”）根据证券交易委员会（“SEC”）的规则和法规编制。\n根据这些SEC规则和法规，某些通常包含在按照一般会计原则编制的财务报表中的信息和脚注披露已被省略；然而，公司认为披露的信息足够充分，不会使所呈现的信息产生误导。但是，除本文披露的内容外，截至2026年5月31日的财务报表附注中披露的信息没有重大变化。这些财务报表和附于此的附注应与公司于2026年9月15日向SEC提交的年度报告10-K中的财务报表和附注一并阅读。在公司管理层看来，所有调整（包括为公允列示截至2026年8月31日的公司财务状况以及截至该期间的经营成果和现金流量而必要的正常重复性调整）均已包括在内。公司截至2026年8月31日的三个月经营成果不一定代表截至2027年5月31日的全年预期结果。

\n \n \n \n \n \n \n

Laredo\n Oil, Inc.

合并\n 资产负债表

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

	August 31, 2026 (Unaudited)			May 31, 2026
资产

流动资产
现金及现金等价物和受限现金	$	147,211			$	420,676
关联方应收款		41,100				37,500
预付费用和其他流动资产		36,027				33,863
流动资产合计		224,338				492,039

财产和设备
财产和设备，净值		61,812				67,172
财产和设备，净值合计		61,812				67,172

对关联方实体的投资		643,225				643,225
其他资产		10,000				10,000

资产总计	$	939,375			$	1,212,436

负债和股东权益（赤字）
流动负债
应付账款	$	3,287,939			$	2,813,598
关联方应付账款和应计负债		476,405				604,243
应计工资负债		3,825,469				3,719,601
应计利息		801,512				724,792
递延井开发成本		2,549,260				2,549,260
可转换债务（用于净营运资金）		575,000				575,000
净债务贴现的桥梁证券		362,264				202,261
担保票据		1,060,061				1,060,061
应付票据 – 关联方		212,099				292,099
应付票据 – Alleghany，扣除债务贴现后的净额		617,934				617,934
应付票据，当前部分		62,505				62,349
流动负债总额		13,830,448				13,221,198

资产弃置义务		157,394				157,394
长期应付票据，扣除当前部分后的净额		747,667				763,352
非流动负债总额		905,061				920,746

负债总额		14,735,509				14,141,944

承诺和或有事项（第12号注释）

股东权益赤字
优先股：$0.0001 面值；10,000,000 股已授权；无股已发行和流通						-
普通股：$0.0001 面值；120,000,000 和 120,000,000 股已授权；截至2026年8月31日和2026年5月31日，分别发行和流通了85,495,558 和 84,244,558 股		8,550				8,424
额外支付资本		21,677,386				20,939,108
累计赤字		(35,482,070	)			(33,877,040	)

股东权益赤字总额		(13,796,134	)			(12,929,508	)

负债和股东权益赤字总额	$	939,375			$	1,212,436

附注是这些合并财务报表的组成部分。

\n \n \n \n \n \n \n \n \n

Laredo\n Oil, Inc.

合并损益表（未经审计）

（未经审计）

	三个月截至 2026年8月31日			三个月截至 2025年8月31日
收入	$	-			$	1,543

直接成本		-				-

毛利（亏损）		-				1,543

租赁运营费用		9,695				4,696
一般、销售和管理费用		577,900				557,067
咨询和专业服务费用		883,563				117,562
减值费用		-				-
总运营费用		1,471,158				679,325

运营收入（亏损）		(1,471,158	)			(677,782	)

其他收入/费用
其他非运营收入		-				15,963
利息费用		(133,872	)			(276,162	)

持续经营的净亏损	$	(1,605,030	)		$	(937,981	)

终止经营的净亏损		-				(14,093	)

净亏损	$	(1,605,030	)		$	(952,074	)

每股亏损
持续经营的基本和稀释每股亏损	$	(0.02	)		$	(0.01	)
终止经营的基本和稀释每股亏损	$	(0.00	)		$	(0.00	)

基本和稀释每股净亏损	$	(0.02	)		$	(0.01	)

基本和稀释的加权平均普通股数		84,811,612				74,872,588

附注是这些合并财务报表的组成部分。

\n \n \n \n \n \n \n \n \n

Laredo\n Oil, Inc.

股东权益变动表（未经审计）

截至2026年和2025年8月31日的三个月

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

								额外		Subscription					总计
	普通股		优先股			支付	支付	累计		股东权益
	股数		金额			股数	金额	资本		预付			赤字		赤字
截至2026年5月31日的余额		84,244,558		$	8,424		-		-		$	20,939,108		$	-		$	(33,877,040	)	$	(12,929,508	)

普通股的销售和发行		1,001,000			101		-		-			500,399			-			-			500,500

股票薪酬		-			-		-		-			22,904			-			-			22,904

以服务换取的股票发行		250,000			25		-		-			214,975			-			-			215,000

净亏损		-			-		-		-			-			-			(1,605,030	)		(1,605,030	)

截至2026年8月31日的余额		85,495,558		$	8,550		-		-		$	21,677,386		$	-		$	(35,482,070	)	$	(13,796,134	)

								额外		Subscription					总计
	普通股		优先股			支付	支付	累计		股东权益
	股数		金额			股数	金额	资本		预付			赤字		赤字
截至2025年5月31日的余额		74,771,476		$	7,477		-		-		$	13,275,577		$	50,000		$	(25,905,369	)	$	(12,572,315	)

普通股的销售和发行		116,279			12		-		-			49,988			(50,000	)		-			-

认股权证的发行		-			-		-		-			185,445			-			-			185,445

净亏损		-			-		-		-			-			-			(952,074	)		(952,074	)

截至2025年8月31日的余额		74,887,755		$	7,489		-		-		$	13,511,010		$	-		$	(26,857,443	)	$	(13,338,944	)

附注是这些合并财务报表的组成部分。

\n \n \n \n \n \n \n \n \n

Laredo\n Oil, Inc.

合并现金流量表

（未经审计）

	三个月结束			三个月结束
	2026年8月31日			2025年8月31日
经营活动产生的现金流量
持续经营的净亏损	$	(1,605,030	)		$	(937,981	)
终止经营的净亏损		-				(14,093	)
净亏损		(1,605,030	)			(952,074	)
调整以将净收入（亏损）调节为经营活动使用的净现金
股票薪酬费用		22,904				-
股票发行以换取服务		215,000				-
折旧费用		5,360				6,877
长期资产减值		-				-
债务折扣摊销		17,003				113,803
出售资产的损失（收益）		-				303
营运资产和负债的变化
关联方应收款		(3,600	)			-
预付费用和其他流动资产		(2,164	)			(83	)
债券		-				20,000
应付账款和应计负债		346,503				(94,024	)
应计工资		105,868				105,912
应计利息		76,720				(6,139	)
经营活动使用的净现金		(821,436	)			(805,425	)

投资活动使用的现金流量

投资活动使用的净现金		-				-

融资活动使用的现金流量

出售普通股所得		500,500				-
本票所得		-				1,189,300
过桥贷款所得		143,000				-
过桥票据偿还		-				(181,164	)
应付关联方票据偿还		(80,000	)			-
预付钻探成本所得		-				-
PPP贷款偿还		(15,529	)			(15,374	)

融资活动提供的净现金		547,971				992,762

持续经营的现金及现金等价物净增加额/减少额		(273,465	)			187,337

持续经营产生的现金/使用的现金
经营活动中使用的现金		-				(31,845	)
投资活动中使用的现金		-				-
融资活动中提供的现金		-				8,438
终止经营产生的现金/使用的现金		-				(23,407	)

期间开始时的现金及现金等价物		420,676				249,409

期间结束时的现金及现金等价物	$	147,211			$	413,339

补充现金流量信息
与债务一同授予的认股权证的相对公允价值	$	-			$	185,445
以应付股票换取普通股发行		-				50,000

支付的利息	$	17,226			$	140,949

附注是这些简要合并财务报表的不可或缺部分。

\n \n \n \n \n

简要合并财务报表的附注

（未经审计）

注\n1 – 组织及业务描述

这些合并财务报表由Laredo Oil, Inc.（“公司”）的管理层编制。\n公司于2008年3月31日根据特拉华州法律成立，名称为“Laredo Mining, Inc.”。\n截至该日期，公司有90,000,000股普通股授权发行，面值为0.0001美元，以及10,000,000股优先股授权发行，面值为0.0001美元。2009年10月21日，公司名称变更为“Laredo Oil, Inc.”。\n2023年5月，公司董事会投票决定将授权发行的普通股增加至120,000,000股，该增加已获得当时已发行普通股多数持有人的批准。

公司是一家石油勘探和生产企业，主要致力于在各种财产上寻找矿产储备。\n从2008年3月成立至2009年10月，公司主要致力于矿产财产的收购和勘探工作。自2009年10月起，公司开始将重点转向寻找成熟的油田，旨在收购这些油田并使用专有的增强采油方法（称为地下重力排水，或UGD）来回收滞留的石油储备。

原始的UGD方法使用传统的采矿工艺在现有油田储层下方建立一个钻井舱，从该舱中计划以紧密间距的井眼定向钻入储层，利用剩余的径向压力和重力，通过井眼将目标储层排干。随着公司通过实际应用相关石油回收工艺积累了经验，已经开发并评估了UGD概念的不同变体。UGD方法适用于具有特定地质特征的成熟油田。公司进行了广泛的研究，并确定了美国及全球范围内认为符合UGD回收方法的油田。公司的主要业务和重点是，在资金到位时，从这些油田中选择的成熟油田中寻求并回收滞留的石油。

公司认为，实施UGD方法的成本远低于目前常用增强石油回收（“EOR”）方法的成本。公司还估计，它能够显著提高油田的石油产量，从以前的时期中恢复的石油量等于或大于从所选成熟油田中以前恢复的石油量。公司打算寻找至少拥有2500万桶估算可采石油的油田。

当公司获得目标油田时，它将继续运营该生产油田，并预计由此产生收入和利润。一旦地下舱室和UGD方法的开发准备就绪，传统井眼将被封堵，并开始UGD生产。公司认为，此类操作的影响应导致其油田投资的石油生产中断最小。

2011年6月14日，公司与Stranded Oil Resources Corporation（简称SORC）签订了多项独家许可和管理协议，SORC是Alleghany Corporation（简称Alleghany）的全资子公司。公司负责管理堪萨斯州、怀俄明州和路易斯安那州成熟油田的收购和运营，主要使用UGD技术从这些成熟油田中回收“滞留”石油。公司为此提供了相关服务，作为交换，公司获得了SORC的权益，每季度管理费以及SORC对公司的员工相关费用的报销。这些费用和报销在公司根据下文所述与Alleghany的证券购买协议收购SORC之前，是公司所有的收入。

2020年12月31日，公司与Alleghany签订了证券购买协议。根据该协议，公司购买了SORC全部已发行和流通的股份。作为SORC股份的对价，公司向Alleghany支付了72,678美元现金，并同意向Alleghany支付七年期的特许权使用费，即公司未来从其石油、天然气、天然气液体以及所有其他碳氢化合物业务中获得的收入和净收益的5.0%，但需根据某些调整进行调整。目前，SORC是公司的全资子公司，且未开展任何持续的业务。

在购买SORC的股份之前，我们在为Allegheny实施地下重力排水（UGD）项目时，获得了在评估、收购、运营和开发油气资产方面的专业知识和运营经验，以及设计、钻探和生产常规油井的专业知识。基于这些专业知识，我们识别并收购了蒙大拿州Lustre和Midfork油田及West Fork地区的45,246英亩总面积和37,932英亩净面积的矿产产权。截至2026年8月31日，Lustre和Midfork油田已钻探了五口井。由于主要遇到过多的水，这些井均未实现经济上的成功。此外，截至2026年8月31日，大部分已收购的租约已到期或被放弃，公司无意续签。

\n \n \n \n \n

注释\n 到合并财务报表

（未审计）

注释\n1 – 组织与业务描述 - 继续

公司于2025年11月19日在德克萨斯州注册成立了一家名为Laredo Mex, LLC的实体，用于管理未来位于墨西哥的任何业务。截至目前，该实体尚未发生任何交易。公司还拥有位于上述描述的矿产权利以西的Cat Creek油田的50%权益。

注释\n2 – 持续经营

这些合并财务报表是按照持续经营基础编制的。公司自成立以来一直亏损，导致累计赤字，并且历史上一直依赖于一个客户为其提供收入。无法保证未来任何融资都能满足公司的需求。这种情况引发了对公司在未来一年内作为持续经营实体继续存在的重大疑虑。

公司管理层已采取措施，作为一项计划以改善运营，目标是在未来十二个月及以后维持运营。这些措施包括持续努力（a）控制运营费用和开支；（b）筹集股权资金用于一般企业用途；以及（c）通过应付票据和可转换债务筹集资金，以扩展和资助资产收购、勘探和开发以及维持运营。公司一直在努力吸引和留住在行业内有丰富经验的关键人员，同时通过让一些经验丰富的员工承担更广泛的职责来控制成本，以管理公司的员工数量。无法保证公司能够成功完成这些措施，公司是否能实现盈利水平并获得额外融资也存在不确定性。无法保证公司能够以令人满意条款和条件获得额外融资，甚至可能无法获得。

随附的合并财务报表未包含任何调整，以反映公司未来可能无法作为持续经营实体继续存在而对资产可回收性和分类或负债金额和分类的可能未来影响。

注释\n3 – 重要会计政策

估计的使用 – 公司管理层在按照一般公认会计原则编制合并财务报表时会使用估计和假设。这些估计和假设会影响资产和负债的报告金额、或有资产和负债的披露以及报告的收入和费用。实际结果可能与这些估计不同。

合并原则 – 附带的合并财务报表包括公司在消除公司间余额和交易后其自身及其子公司的账户。

权益法投资 - 被归类为权益法的投资包括公司能够行使重大影响但不能控制的公司的投资。在权益法下，投资最初按成本记录，然后公司将被投资方的净收入或净损失的按比例份额作为“其他收入”的一部分记录，并相应地增加或减少投资的账面价值。从被投资方收到的分配会减少公司对投资的账面价值。如果出现表明此类资产的账面金额可能无法收回的事件或情况，将对这些投资进行减值测试。

在2026财年，公司权益投资Cat Creek Holdings, LLC（CCH）向Laredo发出了一笔20,000美元的资本认缴，以帮助资助运营费用。由于CCH一直未盈利，Laredo对该额外投资进行了减值。2027财年第一财季未再发出任何额外的资本认缴。

每股基本和稀释损失 - 基本和稀释每股收益/损失是通过将归属于普通股股东的净收入/损失除以期间内发行的普通股加权平均数计算得出的。稀释每股收益/损失考虑了期间内所有稀释性潜在普通股。如果其影响是反稀释的，稀释每股收益/损失将排除所有潜在普通股。由于公司在截至2026年8月31日和2025年的三个月期间实现了净损失，因此在计算稀释每股损失时未包括可能的稀释性证券，因为其影响将是反稀释的。稀释每股收益/损失是通过将净收入（损失）除以期间内发行的普通股和稀释性普通股等价物的加权平均数计算得出的。

\n \n \n \n \n

简要合并财务报表的附注

（未经审计）

附注\n3 – 重要会计政策 - 续

收入确认 - 公司按照ASC 606《与客户合同的收入》确认收入。原油收入在公司将原油产量的控制权转移给购买方时确认。我们认为，当购买方能够直接使用并获得原油产量的大部分剩余收益时，控制权的转移就已发生。我们根据适用销售协议确定的估计交付量和估计价格来确认收入。我们根据公司测量的体积读数来估算销售量。随后，我们根据从购买方收到的数据对原油销售进行调整，这些数据反映了实际交付量和收到的价格。我们在实际交付后一至两个月收到销售款项。销售估计值与实际销售值之间的差异会在一至两个月后记录。当公司不是运营商时，石油和天然气生产的收入根据运营商向公司报告的销售日期确认。

现金及现金等价物和受限现金 - 所有期限为三个月或更短的高流动性投资均被视为现金等价物。截至2026年8月31日和2026年5月31日，没有现金等价物或受限现金。有时，公司会在其金融机构中持有超过FDIC保险限额的现金余额。

公司为资助井开发成本而签订了参与协议。合同要求参与者在协议执行时向Hell Creek Crude LLC支付合同价格。参与者按比例参与任何钻井的净工作权益的所有权。在钻井前从工作权益参与者处收到的资金用于明确目的，即钻井、完井和设备安装。根据财务会计准则委员会（“FASB”）会计准则汇编（“ASC”）230-10-50-8的规定，公司在井开发开始前将这些资金归类为受限现金。当从这些资金中支付款项时，公司将其记录为石油和天然气收购成本。

受限现金余额已从我们全资子公司West Fork Resources, LLC（“West Fork”）从合格投资者处获得的投资中减少至零，West Fork旨在开发和寻找位于Fort Peck保留地西部边缘Williston盆地北部部分地区的石油储量。由于公司筹集资金的时间较长，一些投资者收到了150万美元的投资金额退款。公司已将剩余的75万美元投资资金用于启动West Fork井开发项目。自2026年1月1日起，公司以643,225美元投资于一家钻井公司，换取了Hell Creek Crude, LLC的5个A类会员单位，作为B&B Oil LLC（一家关联方）管理的2,060万美元钻井项目的一部分。这些资产被重新分类并记录为对关联方实体的投资。

预付费用和其他流动资产 – 公司的预付费用和其他流动资产主要包括预付法律费用，这些费用在工作完成后计入费用，预付的董事及高管保险费用，在12个月合同期内计入费用并摊销，以及在工作开始前的预付款。

固定资产 - 公司固定资产的账面价值代表了为获得固定资产而发生的成本，扣除任何减值。对于企业合并，固定资产成本基于收购日的公允价值确定。固定资产按成本减去累计折旧和摊销列示。折旧和摊销采用直线法，按资产的估计使用寿命计算。车辆和机械的估计使用寿命为五至七年。当事件或情况变化表明账面价值可能无法收回时，会审查固定资产的账面价值是否可能减值。如果预计与该资产直接相关的未折现的未来净经营现金流（包括处置价值，如有）小于该资产的账面价值，则确定该资产发生减值。如果确定任何资产发生减值，损失金额为该资产账面价值超过其公允价值的金额。修理和维护费用在发生期间计入费用。

公司截至2026年8月31日和2025年8月31日的三个月内计提的折旧费用分别为$5,360和$6,877。

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简要合并财务报表的附注

(未审)

附注\n3 – 重要会计政策 - 续

固定资产明细表

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

	2026年8月31日		2025年5月31日
	2026年（未审）		2026
车辆和设备	$	193,463		$	193,463
累计折旧		131,651			126,291

固定资产，净额	$	61,812		$	67,172

资产弃置义务 - 当公司与油气井相关的法定义务产生时，公司会记录与资产弃置义务（“AROs”）相关的负债。相应的成本作为资产资本化，并计入油气资产的账面价值，并在资产的使用寿命内进行折耗。随后，AROs负债会按当时现值进行累积。

每个AROs公允价值计算中都包含大量假设和判断，包括最终结算金额、通货膨胀因素、调整信用的折现率、结算时间以及法律、监管、环境和政治环境的变化。如果这些假设的未来修订影响现有ARO负债的公允价值，将相应调整油气资产余额。大于或小于作为ARO计提的金额的结算，在结算时作为收益或损失进行记录。

石油和天然气收购及钻井成本 - 石油和天然气收购及钻井成本包括对未探明和未评估资产的投资支出，包括非生产性租赁、租赁或钻井权益成本，以及钻探一口勘探井的成本。勘探钻井成本在井的结果确定后才予以确认。如果勘探井发现了已探明储量，这些待确认的成本将转入公司的“井及相关设备和设施”账户。成本每年都会审查以确定是否发生了减值。由于成功完成井和未来资金可用性的不确定性，我们尚未提供需要此类披露的已探明储量的披露信息。在与Texakoma协议一起，已钻了三口井，但因遇到的水侵需要成功且经济的处置而尚未评估。由于目前它们并未生产经济规模的原油，且在没有识别已探明储量的储量报告的情况下，公司已将这些投资在2024年5月31日进行了减值。同样，Midfork井也未生产经济规模的原油，并在2025年5月31日前已停产。根据参与协议，Midfork的石油和天然气收购及钻井成本已抵减了待确认的井开发成本。在截至2025年5月31日的财年中，主要与Midfork井相关的成本记录了总计653,874美元的减值。2025年11月15日，公司子公司Hell Creek Crude, LLC出售给了B&B Oil, LLC，一家关联方。截至2026年5月31日，石油和天然气资产和租赁收购成本总计343,299美元，其中包括232,774美元过期的财产租赁和110,525美元其他石油和天然气资产，目前没有使用计划，已进行了减值。West Fork子公司持有的剩余石油和天然气资产总计643,225美元已用于投资出售给B&B Oil, LLC的Hell Creek Crude, LLC的少数股权，并已重新分类为“关联方实体的投资”。未评估的财产租赁和溢价成本予以资本化，而获取财产的土地管理人和法律成本则在发生时作为费用处理。

截至2026年8月31日和2026年5月31日，公司没有石油和天然气收购及钻井成本。

债务发行成本 – 公司将与长期债务发行相关的成本作为相关债务账面价值的直接减项，并在相关债务的期限内进行摊销。

金融工具的公允价值 – 公司将公允价值定义为在计量日，市场参与者之间有序交易中出售资产所获得的金额或转移负债所支付的金额。公允价值计量按以下类别进行分类和披露：

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

	●	级别\n 1 – 活跃市场中相同资产和负债的未调整报价，活跃市场中的报价具有最高优先级。

	●	级别\n 2 – 除级别I中包含的报价外，其他可观察的资产或负债输入值，无论是直接还是间接的。

	●	级别\n 3 – 金融资产或金融负债的不可观测输入值，优先级最低。

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注释\n 合并财务报表的注释

(未审计)

注释\n3 – 重要会计政策 - 续

公司现金、应收账款、其他流动资产、应付账款、应计负债的账面价值，反映在合并资产负债表中，由于这些工具的短期到期日，其近似公允价值。由于自这些工具发行以来市场利率的变动微不足道，或由于其短期性质，公司应付票据的账面价值近似其公允价值。

基于股票的薪酬 - FASB ASC 718，薪酬 - 股票薪酬规定了所有针对员工的股票薪酬奖励的会计和报告标准，包括员工股票期权、限制性股票、员工股票购买计划和股票增值权。基于股票的薪酬奖励可能被归类为权益或负债。公司应确定是否存在以现金或其他资产结算基于股票的薪酬交易的现时义务。如果存在以下情况，则存在以现金或其他资产结算的现时义务：(a) 以发行权益工具结算的选择缺乏商业实质，或 (b) 由于实体过去的实践或声明的政策，现时义务是隐含的。如果存在现时义务，该交易应作为负债确认；否则，该交易应作为权益确认。

公司根据 FASB ASC 718 的规定，对向非员工和顾问发行的基于股票的薪酬进行会计处理。\n基于股票的薪酬交易的计量应基于以下更可靠计量的公允价值：\n(a) 所收到的商品或服务；或 (b) 发行的权益工具。基于股票的薪酬交易的公允价值应在履行承诺日期或履行完成日期中较早者确定。

注释\n4 – 近期和采用的会计准则

公司已实施所有生效的新会计声明。除非另有披露，这些声明对合并财务报表没有重大影响，公司认为没有其他已发布的会计声明可能对其财务状况或经营成果产生重大影响。

注释\n5 – 资产报废和环境义务的会计处理

公司根据《资产报废和环境义务的会计处理》对资产报废义务进行会计处理。这要求在发生时以公允价值确认与长期资产报废相关的法律义务，并作为相关长期资产的一部分资本化。随着时间的推移，该负债每期按现值进行折算，而资本化的资产则在长期资产的使用寿命内进行折旧。

在没有报价市场价的情况下，公司使用现值技术来估计其资产弃置义务的公允价值，其中对与弃置活动相关的未来现金流进行估算，并使用调整信用风险的无风险利率进行贴现。如果实际成本与假设相差较大，或政府法规发生重大变化，公司的估计负债可能会发生重大变化。

截至2024年5月31日，公司的资产弃置义务与Olfert 11-4井以及Texakoma井的工作权益相关。2024年7月，公司在Hell Creek重油田开始钻探Reddig井时建立了额外的资产弃置义务。当时，初始资产弃置义务资产和相关负债按净现值记录，总计88,883美元，使用公司基于25年预期井寿命的现金流估算，并使用调整信用风险的无风险利率4%进行贴现。当Reddig井停产时，公司重新评估了估计的资产弃置义务。重新评估的资产弃置义务总额为127,698美元（扣除折旧后），记入减值费用。修订后的资产弃置义务是根据公司更新的现金流估算假设计算的，即井的预期寿命为2年，通货膨胀率为2.7%，并使用调整信用风险的无风险利率4%进行贴现。HCC的资产弃置义务在会员销售交易中由B&B Oil承继。

截至2026年8月31日和2026年5月31日，公司所有井的资产弃置义务总额为157,394美元。

\n \n \n \n \n

简要合并财务报表的附注

（未经审计）

注5 – 资产弃置和环境义务的会计处理 - 继续

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

	2026年8月31日		2026年5月31日
Olfert 11-4井		114,896			114,896
Texakoma井（15%净工作权益）		42,498			42,498

总计	$	157,394		$	157,394

注6 – 工资负债

公司已计提工资负债，以记录根据员工合同应支付但未到期的金额。公司在其存在期间大部分时间面临现金约束，并要求关键高管推迟部分工资，直到公司现金流改善或出现流动性事件。支付的现金金额从合同义务中扣除，剩余应付金额作为工资负债记录。公司的首席执行官和首席财务官均已同意推迟根据其合同应付的工资，这些推迟的工资作为工资负债记录。

注7 – 递延井开发成本和井开发押金

公司将其在单个油井中的投资者投资记录为负债，截至2026年8月31日和2026年5月31日，总额为2,549,260美元。涉及净营运权益的若干协议规定，大部分石油收入将分配给投资者，直到原始投资被收回。同时，相关现金也会分配给投资者，负债余额会按比例减少，直到原始投资被收回。此后，大多数合同规定分配比例恢复为投资者与公司之间的50/50分成。截至2026年8月31日的记录显示，Olfert 11-4油井的投资额为1,799,260美元。Reddig油井在2025财年期间开始生产。由于生产不经济，该油井在2025年5月31日前被关闭。作为参与协议下的运营商，从投资者处为Reddig 11-21油井获得的2,835,500美元投资与相关石油和天然气资产相抵消。Olfert 11-4和Reddig 11-21均位于蒙大拿州瓦利县。 2025年11月15日，Reddig 11-21的运营商Hell Creek Crude LLC被B&B Oil, LLC收购，并记录为终止经营。

公司将其从合格投资者处获得的2,250,000美元记录为West Fork的井开发存款。在2026年5月31日之前，某些West Fork投资者要求退还资金，并已退还1,500,000美元，因为该项目尚未完全获得资金。截至2026年1月1日，剩余的750,000美元West Fork井开发存款已记录，并且相关资产总额为643,225美元，已重新分类为对关联方的股权投资，以换取购买Hell Creek Crude, LLC的5个会员单位。截至2026年5月31日，剩余的West Fork石油和天然气资产总额为110,525美元，已计提减值。

注8 – 公允价值计量

金融工具的公允价值

现金及现金等价物、应收账款和其他应收款、应付账款和应计流动负债的账面价值由于其短期性质，接近其公允价值。

按非经常性基础计量公允价值的资产和负债

石油和天然气资产以及在钻探石油和天然气井或在收购额外石油和天然气营运权益时承担的资产弃置义务的估计公允价值基于估计的贴现现金流模型和市场假设。计算估计的贴现现金流模型所使用的重大第三级假设包括未来商品价格、估计石油和天然气储量数量的预测、未来开发的时间和数量预期、运营和资产弃置成本、未来产量率的预测、预期回收率和风险调整的贴现率。有关石油和天然气资产收购的更多信息，请参阅注释3。

公司根据预计的未来现金流出的折现值来估计资产弃置义务的公允价值，这些现金流出是为解决废弃和恢复负债所必需的。这种估计需要对负债的存在、为解决该负债所需的现金流出金额和时间、什么是充分的恢复、通货膨胀因素、调整信用的折现率以及对法律、监管、环境和政治环境变化的考虑做出假设和判断。废弃和恢复成本的估计是与公司的储量工程师一起根据以往关于类似井场废弃和恢复成本的信息、当前市场条件和成本的信息以及对相关井场和财产的知识来确定的。本期的资产弃置义务公允价值计量属于第三级公允价值计量。如注释5所述，如果可以合理估计公允价值，公司在其发生的期间确认资产弃置义务的公允价值。资产弃置义务在初始确认后不按公允价值计量。

\n \n \n \n \n

注释\n 到合并财务报表

（未经审计）

注释\n9 – 关联方交易

关联方之间的交易即使可能不被会计确认，也被视为关联方交易。FASB ASC 850，关联方披露（“FASB ASC 850”）要求披露可能对决策产生影响的关联方交易，以便合并财务报表的使用者能够评估其重要性。关联方交易通常发生在以下关系的背景下：

\n \n \n \n \n

●

该实体的关联方；

\n \n \n \n \n

●

投资实体通常根据权益法对其股权证券进行核算的实体；

\n \n \n \n \n

●

受益人为员工的信托；

\n \n \n \n \n

●

该实体的主要所有者及其直系亲属；

\n \n \n \n \n

●

该实体的管理层及其直系亲属。

\n \n \n \n \n

●

其他可能显著影响交易方管理或经营政策的方，并且可能显著影响另一方，以至于交易方中的一方或多方可能无法充分追求其自身的独立利益。

2023年11月27日，公司与首席财务官签订了修订和重述的无固定期限借款协议（“无固定期限协议”）和修订和重述的会员权益质押协议（“Lustre质押协议”）。根据无固定期限协议，公司承诺在要求时支付所有向公司支付的款项的本金总额，最高为40万美元，加上年利率为10%的利息。截至2026年8月31日，不包括累计利息的预付款总额为212,099美元。无固定期限协议根据Lustre质押协议的条款，由公司对Lustre的所有权益作为担保。

在2026年3月和2025年10月，由罗伯特·阿达莫先生拥有的Amalfi投资服务LLLP（一位合格投资者）以每股0.50美元和0.43美元的价格购买了公司普通股的1,000,000和1,500,000股受限股票，总计分别为500,000美元和645,000美元。2023年5月，公司根据与阿达莫先生的股票购买协议收到资金，以每股0.0441美元的价格购买了公司普通股的6,062,886股受限股票，总计267,320美元。由于这些投资，阿达莫先生现在持有公司流通股的10%以上。在成为股东之前，2022年11月，阿达莫先生根据第11号注释中披露的条款，通过有担保可转换债务投资了100,000美元，并是Reddig 11-21井的投资者。包括其原始投资和资本认股，阿达莫先生总共向Reddig 11-21井投资了510,800美元。

2025年11月15日，B&B石油公司从拉雷多公司收购了Hell Creek Crude, LLC（HCC）100%的会员权益，作为对B&B石油公司未来分配的50%的对价。该交易记录在终止经营中，净负债总计272,892美元已被消除，并记录在额外实收资本中。

作为上述收购的一部分，HCC与拉雷多公司签订了一份咨询协议，根据该协议，HCC将报销与钻探和开发传统石油井相关的费用。由于HCC没有全职员工，HCC的运营商B&B石油公司已请求并得到拉雷多公司的同意，让他们的员工将一定比例的时间用于HCC。

根据该协议，拉雷多公司向HCC开具了568,868美元的发票，用于预计与HCC计划在2026年12月31日前开发的6口井相关的井位选择、钻探、开发和完成成本。截至2026年5月31日，公司已将305,762美元作为相关工资费用的抵减项确认。在截至2026年8月31日的季度内，约112,760美元已被确认为工资费用。与该协议相关的剩余递延收入总计150,346美元已包含在应付账款和应计负债-关联方中，预计将在截至2026年12月31日的剩余四个月内确认。截至目前，预计不会产生额外的付款或偿还。

\n \n \n \n \n

简要合并财务报表的备注

（未审计）

备注9 – 关联方交易 - 继续

截至2026年8月31日，Adamo先生拥有公司约920万股普通股，其中包括2026年3月、2025年10月和2023年5月购买的股份，以及此前购买的60万股，其持股超过公司已发行股份的10%。2024年7月22日，Adamo先生向Lustre提供了5万美元的借款，截至2026年8月31日，该金额已记录在应付账款中。该借款交易未书面记录，但预计会偿还。还款条款将通过协商确定。Adamo先生同意使用其中的1万美元来资助Cranston SWD购买的一部分。截至2026年8月31日，Adamo先生提供的其余资金已用于满足一般公司用途。

公司的应付账款包括我们两位外部董事会成员的季度董事津贴各137,500美元。此外，截至2026年8月31日，Laredo对Olfert 11-4有3,600美元的应收款项。

注释10 – 股东权益赤字

基于股票的薪酬

公司在截至2026年8月31日及2025年8月31日的三个月内未授予任何期权。

公司在2026财年第二季度（截至2025年11月）授予了购买公司9,725,000股普通股的期权，价格为每股0.28美元。购买普通股的期权中，总计7,475,000股在授予日立即生效，购买1,000,000股普通股的期权将在三年内每月生效，最后的1,250,000股期权在满足某些条件后有条件生效。公司在截至2026年8月31日的三个月内，将股票期权授予的基于股票的薪酬总额22,904美元计入了一般、销售和管理费用。

我们使用布莱克-舒尔斯期权定价模型来估算根据股票激励计划授予的期权的公允价值。

截至2025年11月30日季度，根据各自授予日期的股票期权授予的公允价值约为2,640,772美元。计算这些价值所使用的加权平均假设基于以下内容：

公允价值假设表

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

	2026
无风险利率		3.62	%
预期股息收益率		0	%
预期波动率		189.1	%
期权预期期限		5.1\n 年

无风险利率基于授予时与债券期限相似的美国国债利率。公司预计在可预见的未来不会宣布派发股息。波动率基于股票期权预期期限内历史股价计算。公司使用简化方法确定其股票期权的预期期限。

限制性股票

在2027财年第一季度（截至2026年8月31日），公司向多位合格投资者发行了1,001,000股股票，这些投资者向公司存入了500,500美元。这些股票在签署股票购买协议并收到资金后发行。

2026年6月20日，公司向一位财务顾问发行了250,000股限制性普通股，作为其服务的报酬，并根据收盘价记录其公允价值为215,000美元。

截至2026年5月31日的第四财季，公司与多位合格投资者签订了股票购买协议，并以每股0.50美元的价格发行了4,477,231股普通股，获得了2,238,615美元现金或债务交换。一家财务咨询公司因提供的服务价值100,000美元而获得了416,667股普通股。

在2026年第三财季，公司以每股0.43美元的价格向一位合格投资者发行了290,697股普通股，该投资者向公司存入了125,000美元，并且还以每股0.43美元的价格向另一位合格投资者发行了232,558股普通股，该投资者向公司存入了100,000美元。截至2026年2月28日，第二次股份销售的发行尚未进行，直到适用的股票购买协议被签署。

\n \n \n \n \n

简要合并财务报表的附注

(未经审计)

注释10 – 股东权益赤字 - 继续

在2026年第二财季，公司以每股0.43美元的价格向合格投资者发行了2,464,650股普通股，这些投资者向公司存入了1,059,800美元。

在2026年第一财季，公司向一位合格投资者发行了116,279股普通股，该投资者于2024年9月5日向公司存入了50,000美元。这些股份在适用的股票购买协议签署后于2025年6月发行。

此次股份销售没有介绍费。这些股份的销售未根据《1933年证券法》（经修订）（“证券法”）进行注册，并且在未经注册或根据证券法的注册要求的适当豁免的情况下，不得在美国出售或发行。

认股权证

在2026年第四财季，公司发行了购买其普通股308,139股的认股权证，加权平均行权价格为每股0.83美元，与公共关系和筹资服务相关。截至2026年5月31日止季度发行的股票认股权证的授予日公允价值总计为206,870美元。使用布莱克-斯科尔斯期权定价模型来估算所授予权证的公允价值。计算估计公允价值所使用的加权平均假设包括3.69%的无风险利率、0%的预期股息收益率、148%的预期波动率和4.4年的预期寿命。

在2026年第二财季，公司发行了购买其普通股85,700股的认股权证，行权价格为每股0.43美元，与发行本金金额为85,700美元的次级承诺票据相关。截至2025年11月30日止季度发行的股票认股权证的授予日公允价值总计为25,034美元。使用布莱克-斯科尔斯期权定价模型来估算所授予权证的公允价值。计算估计公允价值所使用的加权平均假设包括3.54%的无风险利率、0%的预期股息收益率、129%的预期波动率和2年的预期寿命。

在2026财年第一季度，该公司发行了认股权证，可购买1,189,300股普通股，每股价格为0.43美元，与发行1,189,300美元本金金额的次级本票相关。截至2025年8月31日止季度内发行的股票认股权证的授予日公允价值总计为220,340美元。使用布莱克-舒尔斯期权定价模型来估算所授予权证的公允价值。在计算估计公允价值时所使用的加权平均假设包括3.95%的无风险利率、0%的预期股息收益率、142%的预期波动率和2年的预期寿命。

在截至2026年5月31日的季度内，以每股0.43美元的行权价行权购买了1,475,000股普通股的认股权证。

在2026财年结束于2026年8月31日的季度结束时，该公司仍有1,569,009份认股权证未行权，可购买普通股，加权平均行权价为每股0.24美元。剩余未行权的认股权证是在截至2024年5月31日的财年以及截至2026年5月31日的第四季度内发行的。

注释11 – 应付票据

12％过桥票据

On\nAugust 3, 2026, the Company entered into a Securities Purchase Agreement with an accredited investor pursuant to which the Company issued\na 12% bridge note in the principal amount of $172,500 receiving $143,000 in net cash proceeds. The promissory note had an original issue\ndiscount of $22,500. In addition, $7,000 of debt issue costs were deducted from the gross proceeds to the Company. The bridge note is\ndue July 30, 2027, and is repaid with the first installment of $96,600 due January 30, 2027 and six equal monthly installments of $16,100\nstarting February 28, 2027. In the event of default (including a missed payment), the note is convertible at the option of the investor\ninto shares of the Company’s common stock at a discount of 35% from the lowest closing bid price during the ten trading days immediately\npreceding the conversion date. As of August 31, 2026, the Company recorded accrued interest totaling $2,286 based on the effective interest\nrate on the debt. Payments of principal and interest are current.

On\nMay 15, 2026, the Company entered into a Securities Purchase Agreement with an accredited investor pursuant to which the Company issued\na 12% bridge note in the principal amount of $238,050 receiving $200,000 in net cash proceeds. The promissory note had an original issue\ndiscount of $31,050. In addition, $7,000 of debt issue costs were deducted from the gross proceeds to the Company. The bridge note is\ndue May 15, 2027, and is repaid with the first installment of $133,308 due November 15, 2026 and six equal monthly installments of $22,218\nstarting December 15, 2026. In the event of default (including a missed payment), the note is convertible at the option of the investor\ninto shares of the Company’s common stock at a discount of 35% from the lowest closing bid price during the ten trading days immediately\npreceding the conversion date. As of August 31, 2026, the Company recorded accrued interest totaling $21,813 based on the effective interest\nrate. Payments of principal and interest are current.

\n \n \n \n \n

NOTES\n TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE\n11 – NOTES PAYABLE - continued

Secured\nConvertible Debt Contributed as Consideration for Participation Agreement

The\nCompany entered into a Note Purchase Agreement dated September 23, 2022 (the “Note Purchase Agreement”), for the issuance\nof secured convertible promissory notes in the aggregate principal amount of up to $7,500,000. The promissory notes accrued interest\non the outstanding principal sum at the rate of 12.0% per annum, payable quarterly starting September 30, 2023, and were convertible\ninto the Company’s common stock at a conversion price of $1.00 per share. The notes issued under the Note Purchase Agreement have\na maturity date of September 30, 2025. Effective January 19, 2024, $575,000 in principal amount of notes, and $73,317 of accrued interest,\nwere contributed as part of a Participation Agreement funding the Reddig 11-21 oil well located in the Midfork field in Valley County,\nMontana. The notes were exchanged for a net working interest in the well, with the caveat that they would be deemed to be reinstated\nin full in the event the well was completed as a dry hole. In early 2025, the well was completed, became operational, and produced limited\namounts of oil. Although the well was not a dry hole, it was uneconomical to operate and was shut in at the end of May 2025. Until final\ndisposition of the well and notes is determined, the Company is reclassifying the notes and related accrued interest as debt and accrued\ninterest commencing June 1, 2025. The notes are not considered to be in default due to their relationship with the Reddig 11-21 well\nthat became operational for a short period of time. During the three months ended August 31, 2026, the Company recorded additional interest\nexpense on the notes resulting in accrued interest totaling $160,087.

12%\nShort Term Demand Notes

The\nCompany issued a short term note with a principal sum of $200,000 to an accredited investor on May 20, 2025. During the first half of\nfiscal 2026, the Company issued additional similar notes in the principal amount $1,275,000, respectively, with the same terms. The notes\nbear simple interest on the unpaid principal balance at a rate equal to 12% per annum, computed on the basis of the actual number of\ndays elapsed and a year of 365 days from the date of the notes until the principal amount and all interest accrued thereon and all other\namounts owed hereunder are paid. The unpaid Principal Amount, together with any unpaid accrued interest and all other amounts owed hereunder,\nshall be due and payable upon written demand by the majority of the note holders at any time after November 21, 2025. In connection with\nthese notes, the Company issued warrants to purchase 1,475,000 shares of its common stock at an exercise price of $0.43. The relative\nfair value of the warrants, totaling $19,685 and $224,402, recorded in fiscal 2025 and fiscal 2026, respectively was recorded as deferred\ndebt discount and additional paid in capital, which is amortized over the term of the loan. During the fiscal year ending May 31, 2026,\n$77,700 of the note balance and related accrued interest were repaid in cash. In May 2026, note holders exercised 1,475,000 warrants\nto repay $634,250 of the outstanding note balances. In order to settle the remaining note balances, the note holders and accredited investors\nentered into Common Stock Purchase Agreements under the Security Purchase Offering in exchange for repayment of the remaining note balance\ntotaling $734,986 and accrued interest totaling $115,027. As of May 31, 2026, the notes have been fully paid and extinguished.

12%\nTen Month Bridge Notes

On\nApril 10, 2025, the Company entered into a Securities Purchase Agreement with an accredited investor pursuant to which the Company issued\na 12% bridge note in the principal amount of $40,250, receiving $35,000 in net cash proceeds, reflecting an original issue discount of\n$5,250. The bridge note is due February 15, 2026 and is repaid with the first installment of $22,540 due October 15, 2025 and four equal\nmonthly installments of $5,635 starting November 15, 2025. In the event of default (including a missed payment), the note is convertible\nat the option of the investor into shares of the Company’s common stock at a discount of 35% from the lowest closing bid price\nduring the ten trading days immediately preceding the conversion date. As of February 28, 2026, the Company recorded accrued interest\ntotaling $0, and the note has been repaid.

On\nFebruary 10, 2025, the Company entered into a Securities Purchase Agreement with an accredited investor pursuant to which the Company\nissued a 12% bridge note in the principal amount of $146,160, receiving $120,000 in net cash proceeds. The promissory note had an original\nissue discount of $20,160. In addition, $6,000 of debt issue costs were deducted from the gross proceeds to the Company. The bridge note\nis due December 15, 2025 and is repaid with the first installment of $81,849 due August 15, 2025 and four equal monthly installments\nof $20,462 starting September 15, 2025. In the event of default (including a missed payment), the note is convertible at the option of\nthe investor into shares of the Company’s common stock at a discount of 35% from the lowest closing bid price during the ten trading\ndays immediately preceding the conversion date. As of December 31, 2025, the accrued interest balance is zero, and the note has been\nrepaid.

On\nDecember 17, 2024, the Company entered into a Securities Purchase Agreement with an accredited investor pursuant to which the Company\nissued a 12% bridge note in the principal amount of $64,960, receiving $50,000 in net cash proceeds. The bridge note had an original\nissue discount of $8,960. In addition, $6,000 of debt issue costs were deducted from the gross proceeds to the Company. The bridge note\nis due October 15, 2025 and is repaid with the first installment of $36,377 due June 15, 2025 and four equal monthly installments of\n$9,094 starting July 15, 2025. In the event of default (including a missed payment), the note is convertible at the option of the investor\ninto shares of the Company’s common stock at a discount of 35% from the lowest closing bid price during the ten trading days immediately\npreceding the conversion date. As of October 31, 2025, the accrued interest balance is zero, and the note has been repaid.

\n \n \n \n \n

NOTES\n TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE\n11 – NOTES PAYABLE - continued

12%\nTen Month Promissory Note

On\nApril 10, 2025, the Company entered into a Securities Purchase Agreement with an accredited investor, pursuant to which the Company issued\na 12% promissory note in the principal amount of $82,800, receiving $65,000 in net cash proceeds. The promissory note had an original\nissue discount of $10,800. In addition, $7,000 of debt issue costs were deducted from the gross proceeds to the Company. The note is\ndue on February 15, 2026 and is repaid in ten equal monthly payments of $9,273.60, commencing on May 15, 2025. In the event of default\n(including a missed payment), the note is convertible at the option of the investor into shares of the Company’s common stock at\na discount of 35% from the lowest closing bid price during the ten trading days immediately preceding the conversion date. The Company\nrecorded accrued interest totaling $0, and the note has been repaid as of February 28, 2026.

On\nDecember 2, 2024, the Company entered into a Securities Purchase Agreement with an accredited investor, pursuant to which the Company\nissued a 12% promissory note in the principal amount of $138,000, receiving $114,000 in net cash proceeds. The promissory note had\nan original issue discount of $18,000. In addition, $6,000 of debt issue costs were deducted from the gross proceeds to the Company.\nThe note was due on October 15, 2025, and is repaid in ten equal monthly payments of $15,456 commencing on January 15, 2025. In the event\nof default (including a missed payment), the note is convertible at the option of the investor into shares of the Company’s common\nstock at a discount of 35% from the lowest closing bid price during the ten trading days immediately preceding the conversion date. As\nof December 31, 2025, the Company recorded accrued interest totaling $0 and the note has been repaid.

10%\nSecured Promissory Demand Note

On\nNovember 27, 2023, the Company entered into an Amended and Restated Demand Promissory Note, (the “Demand Note”), and an Amended\nand Restated Membership Interest Pledge Agreement, (the “Lustre Pledge Agreement”) with the Company’s Chief Financial\nOfficer. Under the Demand Note, the Company promises to pay on demand the principal sum of all disbursements made to the Company up to\n$400,000, plus interest accrued at an annual rate of 10%. As of August 31,2026, the aggregate amount of advances, excluding accrued interest,\nwas $212,099. The Demand Note is secured by all of the Company’s interests in Lustre, pursuant to the terms of the Lustre Pledge\nAgreement. The accrued interest balance amounted to $930 as of August 31, 2026.

12%\nSecured Promissory Note

On\nMarch 23, 2023, an individual accredited investor paid the Company the aggregate amount of $100,000 for a Secured Promissory Note (the\n“Note”). The Note accrues interest on the outstanding principal sum at the rate of 12.0% per annum and has a maturity date\nof March 23, 2024. Interest will be due and payable monthly in arrears. The Note is secured by certain equipment owned by the Company\npursuant to a Security Agreement with the lender. On May 23, 2023, the Note was increased by $83,000 to an aggregate principal amount\nof $183,000. During June, July and August 2023, the investor contributed an additional $102,061 under the Note, bringing the aggregate\nprincipal amount to $285,061. On November 24, 2023, the investor added another $25,000 to the Note bringing the total principal outstanding\nto $310,061. The note is past maturity, and the investor has not demanded repayment of the note. It remains outstanding and the Company\nis paying interest of $3,101 monthly and is current as of August 31, 2026.

Secured\nPromissory Note

The\nCompany issued a Secured Promissory Note, dated June 28, 2022 (the “Secured Note”), with the initial principal amount of\n$750,000. The Secured Note is payable to Cali Fields LLC (the “Lender”). The Secured Note accrues interest on the outstanding\nprincipal sum at the rate of 15.0% per annum. The Company may prepay the Secured Note in whole or in part, without penalty, with any\nsuch payment being applied first to any accrued and unpaid interest, and then to the principal amount. The Secured Note has a maturity\ndate of December 31, 2023. As of August 31, 2026 the note is recorded as current and outstanding. The Lender has not demanded repayment\nand starting on January 1, 2024, the Company is accruing interest at the default rate of 18.0% per annum. The accrued interest balance\namounted to $430,425 as of August 31, 2026. On July 2, 2025, the Company paid $100,000 to reduce accrued interest on the Secured Note.

As\npartial consideration for the Lender’s advance of the principal amount of the Secured Note, the Company agreed to pay the Lender\na quarterly revenue royalty equal to 0.5% of the consolidated revenue of the Company and its consolidated subsidiaries from the production\nof oil, gas, gas liquids and all other hydrocarbons, recognized by the Company during the most recent calendar quarter during the “Royalty\nPeriod,” from June 1, 2022, through May 31, 2027.

The\nSecured Note is secured by the Company’s fifty percent (50%) interest in Cat Creek.

\n \n \n \n \n

NOTES\n TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE\n11 – NOTES PAYABLE - continued

Alleghany\nNotes

Schedule\nof Notes Payable – Related Party

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

	August 31,		May 31,
	2026		2026
Total note payable – Alleghany	$	617,934		$	617,934
Less amounts classified as current		617,934			617,934

Note payable – Alleghany, net of current portion	$	-		$	-

During\nthe fiscal year ended May 31, 2011, the Company entered into two Loan Agreements with Alleghany Capital for a combined available borrowing\nlimit of $350,000. The notes accrued interest on the outstanding principal of $350,000 at the rate of 6% per annum, with an amended due\ndate of December 31, 2020.

In\nconnection with the SORC Purchase Transaction, the notes were amended, restated and consolidated into one note including all accrued\ninterest through December 31, 2020, for a total of $631,434 (the “Senior Consolidated Note”) with a maturity date of June\n30, 2022. The Senior Consolidated Note requires any stock issuances for cash be utilized to pay down the outstanding loan balance unless\nwritten consent is obtained from Alleghany. As part of the SORC Purchase Agreement, the Company agreed to secure repayment of the Senior\nConsolidated Note with certain equipment and to reduce the note balance with any proceeds received from any sales of such equipment.\nDuring the five months ending May 31, 2021, the Company repaid $13,500 of the Senior Consolidated Note upon the sale of certain equipment.\nThe note bore no interest until January 1, 2022 whereupon the interest rate increased to 5% per annum through maturity. Principal with\nall accrued and unpaid interest is due at maturity. In connection with the SORC acquisition purchase price allocation, the Company recorded\na debt discount totaling $30,068 in recognition of imputed interest on the Senior Consolidated Note, to be amortized over the first year\nof the note term. The debt discount has been fully amortized as of December 31, 2021. In August 2022, the Company entered an amendment\nto the Senior Consolidated Note whereby the maturity date of the loan was extended to December 31, 2023 in exchange for an interest rate\nto 8% per annum commencing July 1, 2022. Further, the revenue royalty as defined in the Purchase Agreement increased from 5% to 6% as\nthe loan was not paid prior to December 31, 2022. As of August 31, 2026 and May 31, 2026, the Senior Consolidated Note is recorded as\ncurrent and remains outstanding.

Paycheck\nProtection Program Loan

Schedule\nof Paycheck Protection Program

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

	August\n 31,		May\n 31,
	2026		2026
Total\n PPP Loan	$	810,172		$	825,701
Less\n amounts classified as current		62,505			62,349

PPP\n loan, excluding current portion	$	747,667		$	763,352

On\nApril 28, 2020, the Company entered into a Note (the “Note”) with IBERIABANK for $1,233,656 pursuant to the terms of the\nPaycheck Protection Program (“PPP”) authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act (“CARES\nAct”) In June 2020, the Flexibility Act which amended the CARES Act was signed into law. Pursuant to the Flexibility Act, the Note\ncontinues to accrue interest on the outstanding principal sum at the rate of 1% per annum. In addition, the initial two-year Note term\nhas been extended to five years through mutual agreement with IBERIABANK as allowed under Flexibility Act provisions.

In\nFebruary 2021, the Company drew an additional $1,233,655 under the PPP Second Draw Loans, bringing the total principal borrowed to $2,467,311.\nThe additional draw is under the same terms and conditions as the first PPP loan.

The\nCompany did not provide any collateral or guarantees for the loan, nor did the Company pay any facility charge to obtain the loan. The\nNote provides for customary events of default, including, among others, those relating to failure to make payment, bankruptcy, breaches\nof representations and material adverse effects. The Company may prepay the Note at any time without payment of any penalty or premium.

The\nCompany applied for forgiveness of the first PPP note and in July 2021 received notice that $1,209,809 of the $1,233,656 note payable\nbalance has been forgiven. Monthly payments commenced on September 1, 2021, and as of May 31, 2025, the Company has repaid all principal\nand interest on the first Note.

\n \n \n \n \n

NOTES\n TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE\n11 – NOTES PAYABLE - continued

In\nApril 2022, the Company applied for partial forgiveness of the PPP Second Draw Loan and received notice that $67,487 of the principal\nand related interest balance has been forgiven and is recorded as income from the extinguishment of the loan obligation. Monthly payments\nof $26,752 commenced on June 3, 2022. The Company was in arrears on payments on the second PPP Note and on December 5, 2023 entered into\na Payment Plan arrangement for the PPP Second Draw Loan. Under the terms of the Plan, the Company agreed to pay the SBA the principal\namount of $979,178 and 180 monthly payments of $5,860 which includes interest. The Company made the first payment under the Plan in December\n2023. If the Company does not make the payments described in the Plan pursuant to the terms of the Plan, the entire remaining amount\nwill be subject to collection activities by the Department of Treasury. The Company may also be subject to additional accrued interest\nand collection fees of 30% or more if it does not make the payments pursuant to the Plan. As of August 31, 2026, the Company is current\nand compliant with the restructured payment plan. As of August 31, 2026 and May 31, 2026, the Company owes $810,172 and $825,701, respectively,\nregarding the remaining balance on the Second Note.

NOTE\n12 – COMMITMENTS AND CONTINGENCIES

Litigation

On\nMarch 20, 2023, Capex Oilfield Services, Inc. (“Capex”) filed a lawsuit against Lustre in the Montana Tenth Judicial District\nCourt, Petroleum County, demanding payment of $377,190 plus interest and collection costs for services provided by Capex to drill the\nOlfert 11-4 well. On January 29, 2024, the court issued a Stipulated Judgment and Order in favor of Capex for $354,267.29 plus interest\nin the amount of $79,225 plus future accruing costs and interest of 18% per annum. The same day, Lustre entered into a Payment Arrangement\nPlan to pay $5,000 per month until the judgement is satisfied. As of August 31, 2026 and May 31, 2026, respectively, the estimated amounts\ndue to Capex totaling $450,783 and $441,513 have been recorded in accounts payable.

On\nMay 18, 2023, Capstar Drilling, Inc.(“Capstar”) filed a lawsuit against Lustre in the Montana Seventeenth Judicial District\nCourt, Valley County, demanding payment of $298,050 plus interest and collection costs for services provided by Capstar to drill the\nOlfert 11-4 well. On July 18, 2024, the court issued an Order to Adopt Stipulation to Judgment in favor of Capstar in the sum of $276,815\nprincipal balance, plus interest in the amount of $49,675, plus court costs for a total judgment of $326,650 with post judgment interest\nof 10% per annum. As of August 31, 2026, and May 31, 2026, respectively, the estimated amounts due to Capstar totaling $366,862\nand $359,537 have been recorded in accounts payable.

On\nAugust 29, 2023, Warren Well Service, Inc. (“Warren Well”) filed a lawsuit against Lustre in the Montana Seventeenth Judicial\nDistrict Court, Valley County, demanding payment of $164,235 plus interest and collection costs for services provided by Warren Well\nto drill the Olfert 11-4 well. As of May 31, 2025, the case was settled for the $164,235 balance plus accrued interest of 10% per year\nand the Company agreed to pay Warren Well $750 per month. As of August 31, 2026 and May 31, 2026, respectively, the estimated amounts\ndue to Warren Well totaling $230,010 and $226,750 have been recorded in accounts payable.

On\nJanuary 14, 2024 Nine Downhole Technologies, LLC aka Nine Energy Service (“Nine Downhole”) filed a complaint against Lustre\nin the Montana Tenth Judicial District Court, Petroleum County, demanding payment, plus accrued interest until the debt is paid in full.\nOn June 1, 2025, Nine Downhole’s Motion for a summary disposition was granted in the amount of $41,842 together with costs and\nany post judgment interest until amount is paid in full. As of August 31, 2026 and May 31, 2026, respectively, $47,068 and $46,039 have\nbeen recorded in accounts payable.

Except\nas set forth above, the Company is not currently involved in any other legal proceedings, and it is not aware of any other pending or\npotential legal actions.

Revenue\nRoyalty

In\naccordance with the Secured Note described above, the Company agreed to pay the Lender a revenue royalty of 0.5% on consolidated revenue\nof the Company arising from the direct production of oil and gas. The royalty period extends from June 1, 2022 through May 31, 2027.

NOTE\n13 – DISCONTINUED OPERATIONS

On\nNovember 15, 2025, B&B Oil acquired 100% of the membership interest of Hell Creek Crude, LLC, or HCC, from Laredo for consideration\nof 50% of future distributions to B&B Oil. The transaction is recorded in discontinued operations, the net liabilities totaling $272,892\nhave been eliminated and recorded in additional paid in capital.

\n \n \n \n \n

NOTES\n TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE\n13 – DISCONTINUED OPERATIONS - continued

There\nare no assets and liabilities associated with discontinued operations as of August 31, 2026, and May 31, 2026.

The\nfollowing table summarizes the Company’s loss from discontinued operations for the three months ended August 31, 2025:

Schedule of Discontinued Operations

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

	Three Months Ended August 31, 2025
Revenue	$	-

Direct costs		-

Gross profit (loss)		-

Lease operating expense		5,196
General, selling and administrative expenses		4,740
Consulting and professional services		4,000
Total Operating Expense from Discontinued Operations		13,936

Operating loss from discontinued operations		(13,936	)

Other income/(expense)
Interest income/(expense)		(157	)

Net loss from discontinued operations	$	(14,093	)

NOTE\n14 – SEGMENT INFORMATION

The\nCompany operates as a single reporting segment engaged in acquisition and exploration efforts to find and develop oil reserves. The Chief\nOperating Decision Makers are the Company’s Chief Executive Officer and its Chief Financial Officer, who together (the “CODM”)\nevaluate company performance based on the consolidated financial statements prepared in accordance with GAAP included herein. Although\nthe Company owns and manages multiple oil properties, the CODM does not evaluate individual properties as separate operating segments.

The\nCODM conducts quarterly financial reviews focusing on the Consolidated Statement of Operations, Balance Sheets and Statements of Cash\nFlows of this report. Investment decisions, including the selection of leased mineral rights acreage and development, are made based\non expected return on investment.

NOTE\n15 – SUBSEQUENT EVENTS

Subsequent\nto August 31, 2026, the Company issued 450,000 shares to various accredited investors who deposited $225,000 with the Company. These\nshares were issued after stock purchase agreements were executed and funds received.

ITEM\n2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking\nStatements

From\ntime to time, we may provide information, whether orally or in writing, including certain statements in this Quarterly Report on Form\n10-Q, which are deemed to be “forward-looking” within the meaning of the Private Securities Litigation Reform Act of 1995\n(the “Litigation Reform Act”). These forward-looking statements and other information are based on our beliefs as well as\nassumptions made by us using information currently available.

The\nwords “believe,” “plan,” “expect,” “intend,” “anticipate,” “estimate,”\n“may,” “will,” “should” and similar expressions are intended to identify forward-looking statements.\nSuch statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions.\nShould one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may\nvary materially from those described herein as anticipated, believed, estimated, expected or intended or using other similar expressions.\nWe do not intend to update these forward-looking statements, except as required by law.

In\naccordance with the provisions of the Litigation Reform Act, we are making investors aware that such forward-looking statements, because\nthey relate to future events, are by their very nature subject to many important factors that could cause actual results to differ materially\nfrom those contemplated by the forward-looking statements contained in this Quarterly Report on Form 10-K, any exhibits to this Quarterly\nReport on Form 10-K and other public statements we make.

Business

We\nwere incorporated under the laws of the State of Delaware on March 31, 2008 under the name of “Laredo Mining, Inc.” As of\nthat date, we had 90,000,000 authorized shares of common stock at $0.0001 par value and 10,000,000 authorized shares of preferred stock\nat $0.0001 par value. On October 21, 2009 our name was changed to “Laredo Oil, Inc.” During May of 2023, our board of directors\nvoted to increase the authorized shares of our common stock to 120,000,000 shares at $0.0001 par value, which increase was approved by\nthe holders of a majority of the shares of our then outstanding common stock.

We\nare an oil exploration and production company, primarily engaged in acquisition and exploration efforts to find mineral reserves on various\nproperties. From our inception in March 2008 through October 2009, we were primarily engaged in acquisition and exploration efforts for\nmineral properties. Beginning in October 2009, we shifted our focus to locating mature oil fields with the intention of acquiring those\noil fields and recovering “stranded” oil reserves using proprietary enhanced recovery methods known as underground gravity\ndrainage, or UGD. UGD opportunities are global in nature and we pursue projects internationally.

The\noriginal UGD method uses conventional mining processes to establish a drilling chamber underneath an existing oil field, from which closely\nspaced wellbores are drilled directionally up into the reservoir, using residual radial pressure and gravity to then drain the targeted\nreservoir through the wellbores. As we gained experience through practical application of the processes involved in oil recovery, we\nhave developed and evaluated variations of the UGD concept. We believe that the UGD method is applicable to mature oil fields that have\nvery specific geological and reservoir characteristics. We have done extensive research and have identified oil fields within the United\nStates and globally that we believe are applicable for UGD recovery methods. Our primary business and focus is now to pursue and recover\nstranded oil from selected mature fields as necessary funds become available.

We\nbelieve the costs of implementing the UGD method are significantly lower than those presently experienced by other commonly used Enhanced\nOil Recovery (“EOR”) methods. We also estimate that we can materially increase the field oil production rate from prior periods\nand recover amounts of oil equal to or greater than amounts previously recovered from selected mature fields. We intend to implement\nthe UGD method in oil fields with a minimum of 25 million barrels of estimated recoverable oil.

When\nwe acquire a targeted oil field, we will continue to operate the producing field and expect to generate revenue from doing so. Once we\nhave developed the underground chamber and the UGD method is prepared for operation, we will cap the conventional wells and begin UGD\nproduction. We believe the effect of such operations should result in minimal disruption of oil production from our field investments.

On\nJune 14, 2011, we entered into several exclusive licensing and management agreements with Stranded Oil Resources Corporation, or SORC,\na wholly owned subsidiary of Alleghany Corporation, or Alleghany. to manage the acquisition and operation of mature oil fields in Kansas,\nWyoming and Louisiana, focused on the recovery of “stranded” oil from those mature fields primarily using UGD. We performed\nthose management services in exchange for a carried interest in SORC, a quarterly management fee and reimbursement from SORC for our\nemployee-related expenses. Such fees and reimbursements were effectively all of our revenues prior to our acquisition of SORC pursuant\nto the closing of the Securities Purchase Agreement with Alleghany described below.

ITEM\n2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

On\nDecember 31, 2020, we entered into a Securities Purchase Agreement with them. Under that agreement, we purchased all of the issued and\noutstanding shares of SORC. As consideration for the SORC shares, we paid Alleghany $72,678 in cash and agreed to pay Alleghany a seven-year\nroyalty of 5.0% of our future revenues and net profits from our oil, gas, gas liquids and all other hydrocarbon operations, subject to\ncertain adjustments. Currently, SORC is a wholly owned subsidiary of Laredo and is not conducting any ongoing operations. All intellectual\nproperty generated by SORC prior to December 31, 2020 transferred with the stock purchase.

Secondary\nto pursuing UGD projects is drilling conventional oil wells in Montana. Prior to purchasing the shares of SORC, while implementing UGD\nprojects for Allegheny, we gained specialized know-how, intellectual property and operational experience in evaluating, acquiring, operating\nand developing oil and gas properties, as well as expertise in designing, drilling and producing conventional oil wells. Based upon that\nknow-how, we identified and acquired 45,246 gross acres, and 37,932 net acres, of mineral property interests in the State of Montana\nin the Lustre and Midfork fields and the West Fork area. To develop our acquired mineral property acreage, we established relationships\nwith several organizations and investment groups, including the following entities: (1) Olfert 11-4 Holdings, LLC, (2) Texakoma Exploration\nand Production, LLC, or Texakoma, (3) Erehwon Oil & Gas, LLC, or Erehwon, (4) an independent investor group through Hell Creek Crude\nLLC, or HCC, and (5) West Fork Resources, LLC, or WFR. As of August 31, 2026, we and Texakoma have drilled five wells in the Lustre and\nMidfork fields. None of these wells have been economically successful due primarily to encountering excess water due to lack of 3D seismic\ninformation to which we now have access. Although we are continually attempting to raise additional funds to develop our other mineral\nproperty interests that we have purchased in the area, our priority is seeking UGD projects globally and have abandoned most of the leased\nmineral property interests acquired. We also disposed of our ownership in Hell Creek Crude LLC on November 15, 2025 and have terminated\nany further drilling projects in the area. As of September 14, 2026, we have 2,945 net acres of mineral property interests located in\nMontana.

We\nalso have a 50% interest in the Cat Creek oil field, located west of our mineral rights described above, which is recorded with no value\non our financial statements.

Underground\nGravity Drainage (UGD)

During\nfiscal year 2027, the environment and interest for UGD has continued to increase, driven by the continued production decline of older\ndepressurized oil fields. We are actively pursuing UGD international opportunities in Argentina, Mexico, the Middle East and Northern\nAfrica region (“MENA”), Romania, Albania and Azerbaijan by engaging in conversations with government officials industry participants\nwho have responsibility for domestic oil production. In the first fiscal quarter ending August 31, 2026, we met with officials from oil\nindustry companies in Mexico and conducted visits to Argentina meeting with oil industry participants and various government officials.\nAdditionally, we are conducting due diligence discussions in Albania and Romania concerning possible UGD projects.

In\nSeptember, we announced the signing of Letter of Intent with a major independent oil producer in Argentina concerning the development\nof UGD facilities there. Progress is being made to reach a definitive agreement as soon as practical.

Domestically\nin the United States, we are in the process of raising funds to develop possible oil fields in Texas that are compatible with the UGD\noil recovery method. There is no assurance that we will be successful in our efforts.

Conventional\nDrilling Operations

Relationship\nwith Erehwon Oil & Gas, LLC

In\nconnection with securing this acreage in Montana, Lustre Oil Company LLC, our wholly owned subsidiary (“Lustre”), entered\ninto an Acquisition and Participation Agreement (the “Erehwon APA”) and subsequent amendments with Erehwon Oil & Gas,\nLLC (“Erehwon”) to acquire oil and gas interests and drill, complete, re-enter, re-complete, sidetrack, and equip wells in\nValley County, Daniels County and Roosevelt County, Montana. The amended Erehwon APA specifies calculations for royalty interests and\nworking interests for the first ten well completions and first ten well recompletions and for all additional wells and recompletions\nthereafter. Lustre will acquire mineral leases and pay 100% of the costs and the split between Erehwon and Lustre will be 20%/80%. Under\nthe amended Erehwon APA, Lustre will fund 100% of the construction costs of the first ten wells and first ten completions. Until payout,\nas defined, is attained, the distribution split between Erehwon and Lustre will be 10%/90%, thereafter, 20%/80%. Any additional wells\nwill be funded 80% by Lustre and 20% by Erehwon.

Royalty\nexpenses for these wells will consist of a royalty interest to the landowner and an overriding royalty interest of between 3% and 6%\nto two individuals who generated the prospects. Those individuals will also receive an amount equal to 5% of the cost of the first ten\nnew wells we complete and the first ten completed recompletions.

ITEM\n2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

Hell\nCreek Crude, LLC Midfork Field Production Well

In\nJanuary 2024, we entered into a Participation Agreement, through our wholly owned subsidiary, Hell Creek Crude, LLC (“HCC”),\nErehwon, and various accredited investors. The Participation Agreement provided us with over $2.8 million to acquire certain leases and\nto drill a development well in the Midfork Field in Montana. Several of the investors also held $575,000 in principal amount of our convertible\ndebt, plus accrued interest of $73,317, which indebtedness was included as investments under the Participation Agreement. Until final\ndisposition of the well and notes is determined, the Company reclassified the notes and accrued interest as debt and accrued interest\non May 31, 2025. These notes continue to accrue interest subsequent to the transfer to debt resulting in accrued interest totaling $160,087\nas of August 31, 2026.

Drilling\nof the development well was completed in the Spring of 2025. After additional perforations and acidizing the well were performed, the\nwell produced limited oil accompanied with water levels that makes it uneconomical to operate and was shut in.

In\nNovember, B&B Oil, LLC purchased 100% of the HCC membership units from us for consideration of a carried interest sharing 50% of\nany future distributions to B&B. As of November 15, 2025, we have no controlling interest or liabilities associated with HCC.

Olfert\n11-4 Montana Well

In\nJanuary 2022, we executed a Net Profits Interest Agreement with Erehwon and Olfert No. 11-4 Holdings, LLC, or Olfert Holdings, for the\npurpose of funding the first well, named Olfert #11-4, under the Acquisition and Participation Agreement described above. In exchange\nfor Olfert Holdings’ funding of the development of Olfert #11-4, Olfert Holdings receives 90% of amounts resulting from Olfert\n#11-4 prior to “Payout” and 50% after “Payout.” The Net Profits Interest Agreement defines “Payout”\nas the point in time when the aggregate of all ‘Net Profits Interest’ payments made to Olfert Holdings under the agreement\nequals 105% of the total well development costs.

The\nwell was drilled in the first half of calendar 2023 and encountered excessive amounts of salt water. Although we still are working to\nput the well into production, it has been over three years since the well was shut-in pending gaining access to a proximate salt-water\ndisposal well making the well economically viable. Although the asset carrying value of the well has been reduced to zero, we will continue\nto evaluate the well with the plan to bring it into production if economical.

Development\nAgreement with Texakoma Exploration and Production, LLC

Effective\nJuly 18, 2023, Lustre and Erehwon entered into an Exploration and Development Agreement (the “Development Agreement”), with\nTexakoma. The Development Agreement provides for the exploration and development of the “Lustre Field Prospect” described\nin the Development Agreement. Lustre and Erehwon are also parties to an existing Acquisition and Participation Agreement, under which\nthose parties agreed to acquire certain oil and gas interests, and drill, complete, re-enter, re-complete, sidetrack, and equip wells,\nin certain counties in Montana.

Under\nthe Development Agreement, three wells were successfully drilled and Texakoma paid 100% of the costs associated with the drilling and\ncompletion of the wells. Lustre and Erehwon, jointly, have an undivided 15% working interest, carried through the tanks, in the wells.\nIn March 2024, Texakoma exercised its option to participate in the development of the remainder of the Lustre Field Prospect. By exercising\nits option, Texakoma agreed to drill eight additional wells, with Lustre and Erehwon having a 15% working interest carried through the\ntanks, and paid Lustre $706,603 for an 85% leasehold interest in the next eight drill sites and a 50% leasehold interest in the balance\nof the Lustre Field Prospect acreage. As of August 1, 2024, Texakoma had paid the balance. The working and net revenue interest in any\nfuture wells drilled subsequent to the first ten wells will be shared by Texakoma and Lustre and Erehwon, jointly, on a 50:50 basis.

As\nof August 31, 2026, the oil levels from the three drilled wells were not sufficient to maintain operation and the wells have been shut\nin pending evaluation and possibly more perforations. Development of the additional eight wells is paused evaluating oil prices and additional\nfield information.

Additional\nAcreage North of the Fort Peck Reservation

We\nwere unable to raise $7.5 million to drill the planned three exploratory wells by selling units of West Fork Resources, LLC. Preliminary\ndevelopment operations such as acquiring seismic data, site selection, and permitting was started, as $750,000 of the $2.25 million funds\ninitially raised elected to commence drilling operations during fiscal year 2025. Upon request, the remaining $1.5 million was returned\nto the investors. Unspent funds were transferred to Hell Creek Crude LLC for working interest units and there will be no additional development\nin West Fork Resources, LLC for the foreseeable future. The membership interest units are recorded as an investment in related party\nentity.

ITEM\n2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

Liquidity\nand Capital Resources

Our\ncash and cash equivalents balance at August 31, 2026 was $147,211. Our total debt outstanding (including unamortized discount of\n$48,286) as of August 31, 2026 was $3,637,530, including (i) $617,934 owed to Alleghany, which is in default and is classified as a current\nnote payable as the original maturity date has passed, and (ii) $810,172 pursuant to notes under the Paycheck Protection Program, or\nPPP, of which we have classified $747,667 as long-term debt, net of the current portion totaling $62,505, which is classified as a current\nnote payable, (iii) a $310,061 secured note classified as short-term, (iv) a $750,000 note payable due to Cali Fields LLC, classified\nas short-term and is in default as the original maturity date has passed, (v) two bridge notes net of the related deferred financing\ncosts totaling $362,264, (vi) a $212,099 note payable due to our Chief Financial Officer, classified as short-term, and (vii) a $575,000\nconvertible debt contributed for net working interest.

As\nof May 31, 2026, our cash and cash equivalents and restricted cash balance was $420,676. Our total debt outstanding as of May 31,\n2026 was $3,573,056, including (i) $617,934 owed to Alleghany is in default and is classified as a current note payable as the original\nmaturity date of December 31, 2023 has passed, and (ii) $825,701 pursuant to notes under the Paycheck Protection Program, or PPP, of\nwhich we have classified $763,352 as long-term debt, net of the current portion totaling $62,349, which is classified as a current note\npayable, (iii) $202,261 short term bridge notes, net of deferred debt discount, (iv) a $310,061 secured note classified as short-term,\n(v) a $750,000 note payable to Cali Fields LLC is in default and is classified as short-term as the original maturity date of December\n31, 2023 has passed, (vi) a $292,099 note payable due to our Chief Financial Officer, classified as short-term and (vii) $575,000 convertible\ndebt contributed for net working interest.

We\nhave continued financing our business with a combination of stock sales and issuances of debt securities, as described above. During\nthe three months ending August 31, 2026, we sold 1,001,000 shares of our common stock to accredited investors raising $500,500, and we\nissued debt securities totaling $172,500. During the quarter ended August 31, 2025, we issued debt securities totaling $1,189,300. There\nwere no finder’s fees related to the sales of the shares described above. The issued shares have not been registered under the Securities\nAct of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent\nregistration or an applicable exemption from registration requirements under the Securities Act.

During\nfiscal year 2026, we saw increased interest from multiple investors/funds and oil field ownership interests in our UGD methods, both\nnationally and internationally, which interest has continued during the three months of fiscal year 2027. We believe this interest is\ndue to a change in the climate for U.S. based energy projects. We believe that this change in the financial markets has made it easier\nfor us to raise equity-related funds, and we expect this to continue for the foreseeable future. Additional funds will need to be raised\neither from investors or operations in order to maintain current operations for the next twelve months.

Results\nof Operations

During\nthe three months ending August 31, 2026, and 2025, respectively, the Company recognized $0 and $1,543 of revenue from one of the three\nTexakoma wells being put into production.

During\nthe three months ending August 31, 2026, and 2025, we incurred operating expenses of $1,471,158 and $693,261 respectively. These expenses\nconsisted of general operating expenses incurred in connection with the day-to-day operation of our business, the preparation and filing\nof our required public reports and stock option compensation expense. The increase in expenses for the three months ending August 31,\n2026, as compared to the same period in 2025, is attributable to legal fees, other professional fees primarily related to financial advisory,\ntravel for potential UGD opportunities and offset by a decrease in payroll expense related to reduced employee time.

During\nthe three months that ended August 31, 2026, and 2025, we recognized minimal other income. We recognized interest expenses totaling $133,872\nand $276,319 during the three months ended August 31, 2026 and 2025, respectively. The decrease in interest expenses is primarily related\nto interest expense recorded in connection with the amortization of the debt discount on the short-term demand notes issued during the\nquarter ending August 31, 2025.

In\nconnection with the sale of HCC, we recorded loss from discontinued operations totaling $0 and $14,093 for three months ending August\n31, 2026, and 2025, respectively.

ITEM\n2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

Recently\nIssued Accounting Pronouncements

Refer\nto Note 4 of the Notes to Consolidated financial statements for a discussion of recently issued accounting pronouncements.

Critical\nAccounting Policies and Estimates

The\nprocess of preparing consolidated financial statements requires that we make estimates and assumptions that affect the reported amounts\nof liabilities and stockholders’ equity/(deficit) at the date of the consolidated financial statements, and the reported amounts\nof revenues and expenses during the reporting period. Significant estimates in these consolidated financial statements include estimates\nrelated to the valuation of stock-based compensation and asset retirement obligation. Changes in the status of certain facts or circumstances\ncould result in a material change to the estimates used in the preparation of the consolidated financial statements and actual results\ncould differ from the estimates and assumptions.

Going\nConcern

These\nconsolidated financial statements have been prepared on a going concern basis. We have routinely incurred losses since inception, resulting\nin an accumulated deficit. We have recently received loans from accredited investors to fund our operations. There is no assurance that\nsuch financing will be available in the future to meet our operating needs. This situation raises substantial doubt about our ability\nto continue as a going concern within the one-year period after the issuance date of the consolidated financial statements included in\nthis report.

Our\nmanagement has undertaken steps to improve operations, with the goal of sustaining operations for the next twelve months and beyond.\nThese steps include an ongoing effort to raise funds through the issuance of debt and equity to fund our strategic shift from conventional\noperations to developing UGD and maintain operations. We have attracted and retained key personnel with significant experience in the\nindustry. At the same time, in an effort to control costs, we have required a number of our personnel to multi-task and cover a wider\nrange of responsibilities in an effort to restrict the growth of our headcount. There can be no assurance that we can successfully accomplish\nthese steps and it is uncertain that we will achieve a profitable level of operations and obtain additional financing. We cannot assure\nyou that any additional financing will be available to us on satisfactory terms and conditions, if at all.

The\naccompanying consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability\nand classification of assets or the amounts and classifications of liabilities that may result from the possible inability of us to continue\nas a going concern.

Off\nBalance Sheet Arrangements

We\ndo not currently have any off-balance sheet arrangements or other such unrecorded obligations, and we have not guaranteed the debt of\nany other party.

ITEM\n3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our\nexposure to market risk is confined to our cash equivalents. We invest in high-quality financial instruments, and we believe we are subject\nto limited credit risk. Due to the short-term nature of our cash, we do not believe that we have any material exposure to interest rate\nrisk arising from our investments.

ITEM\n4. CONTROLS AND PROCEDURES

(a)\nEvaluation of Disclosure Controls and Procedures

We\nmaintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed\nor submitted under the Securities Exchange Act of 1934, as amended, or the Exchange Act, is recorded, processed, summarized and reported\nwithin the time periods specified in the rules and forms of the Securities and Exchange Commission, or the SEC. Our disclosure controls\nand procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our\nreports filed under the Exchange Act is accumulated and communicated to management as appropriate to allow timely decisions regarding\nrequired disclosures. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including\nthe possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, even effective disclosure\ncontrols and procedures can only provide reasonable assurance of achieving their control objectives, and management necessarily is required\nto use its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

ITEM\n4. CONTROLS AND PROCEDURES (Continued)

An\nevaluation was carried out under the supervision and with the participation of our management, including our Chief Executive Officer,\nor CEO, and Chief Financial Officer, or CFO, of the effectiveness of our disclosure controls and procedures as of the end of the period\ncovered by this report as defined in Exchange Act Rule 13a-15(e) and Rule 15d-15(e). Based on that evaluation, our CEO and CFO have concluded\nthat, as of the end of the period covered by this report, our disclosure controls and procedures are not effective because of a material\nweakness in our control over financial reporting. A material weakness is a deficiency, or a combination of deficiencies, in internal\ncontrol over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual\nor interim financial statements will not be prevented or detected on a timely basis. Specifically, the Company’s management has\nconcluded that as of August 31, 2026, we had no full-time employees with the requisite expertise in the key functional areas of finance\nand accounting. As a result, there is a lack of proper segregation of duties necessary to ensure that all transactions are accounted\nfor accurately and in a timely manner. This material weakness resulted in the restatement of the Company’s financial statements\nfor the fiscal year ended May 31, 2025. In light of this material weakness, we performed additional analysis as deemed necessary to ensure\nthat our financial statements were prepared in accordance with U.S. generally accepted accounting principles. Accordingly, management\nbelieves that the financial statements included in this Quarterly Report on Form 10-Q present fairly in all material respects our financial\nposition, results of operations and cash flows for the periods presented.

Our\nsmall size and limited resources have prevented us from being able to employ sufficient resources to enable us to have an adequate level\nof supervision and segregation of duties. Further we have limited specific oil and gas accounting personnel in our accounting department\ndue to our small size, lack of resources and limited technical accountants on staff. This led to material adjustments to oil and gas\ninvestment and asset impairment evaluations. It is difficult for us to effectively segregate accounting duties and have proper financial\nreporting, which creates a material weakness in internal controls. The remediation plan to correct the material weakness is to hire qualified\npeople to provide adequate supervision and segregation of duties over financial reporting.

(b)\nChanges in Internal Control Over Financial Reporting

None.

PART\nII - OTHER INFORMATION

ITEM\n1. LEGAL PROCEEDINGS

See\nNOTE 12 – COMMITMENTS AND CONTINGENCIES of PART 1, FINANCIAL STATEMENTS.

ITEM\n2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

During\nthe first fiscal quarter of 2027, we sold 1,001,000 shares of common stock at $0.50 per share to accredited investors who deposited $500,500\nin our account. The stock sales were not registered under the Securities Act, and proceeds from the sales were used for general corporate\npurposes.

During\nthe first fiscal quarter of 2026, the Company issued 116,279 shares of common stock to an accredited investor who deposited $50,000 with\nthe Company on September 5, 2024. These shares were issued in June 2025 after the applicable stock purchase agreement was executed, and were\nnot registered under the Securities Act as described in NOTE 10, STOCKHOLDER’S EQUITY of PART 1, FINANCIAL STATEMENTS. Proceeds\nfrom the sales were used for general corporate purposes and payment of maturing debt.

ITEM\n5. OTHER INFORMATION

None.

ITEM\n6. EXHIBITS

The\nexhibits required to be filed herewith by Item 601 of Regulation S-K, as described in the following index of exhibits, are attached hereto\nunless otherwise indicated as being incorporated herein by reference, as follows:

3.1	Certificate\n of Incorporation, included as Exhibit 3.1 in our Form S-1 filed August 25, 2008, File No. 333-153168 and incorporated herein by reference.

3.2	Certificate\n of Amendment of Certificate of Incorporation, included as Exhibit 10.1 to our Form 8-K filed October 22, 2009 and incorporated herein\n by reference.

3.3	Bylaws,\n included as Exhibit 3.2 in our S-1 filed August 25, 2008, File No. 333-153168 and incorporated herein by reference.

3.4	Certificate\n of Amendment to Certificate of Incorporation, included as Exhibit 10.1 to our Form 8-K filed\n May 30, 2023, and incorporated herein by reference. \n
31.1	Certification\n of the Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

31.2	Certification\n of the Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.1	Certificate\n Pursuant to 18 U.S.C. Section 1350 signed by the Chief Executive Officer

32.2	Certificate\n Pursuant to 18 U.S.C. Section 1350 signed by the Chief Financial Officer

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SIGNATURES

In\naccordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned,\nthereunto duly authorized.

LAREDO\nOIL, INC.

(Registrant)

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

Date:\n October 15, 2026	By:	/s/\n Mark See
		Mark\n See
		Chief\n Executive Officer and Chairman of the Board

Date:\n October 15, 2026	By:	/s/\n Bradley E. Sparks
		Bradley\n E. Sparks
		Chief\n Financial Officer, Treasurer and Director

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