Note 8 Convertible Notes Payable | Note 8 Convertible Notes Payable May 31, 2015 November 30, 2014 Promissory Note #6 20,000 20,000 Promissory Note #7 20,000 20,000 Promissory Note #8 20,000 20,000 Promissory Note #10 30,000 30,000 Promissory Note #13 3,895 12,710 Promissory Note #15 47,625 88,000 Promissory Note #16 10,325 11,000 Promissory Note #17 - 11,000 Promissory Note #18 - 50,000 Promissory Note #19 - 11,000 Promissory Note #20 - 11,000 Promissory Note #21 - 16,000 Promissory Note #22 - 50,000 Promissory Note #23 16,000 16,000 Promissory Note #24 16,000 16,000 Promissory Note #25 16,000 16,000 Promissory Note #26 16,000 16,000 Promissory Note #27 16,000 16,000 Promissory Note #28 16,000 16,000 Promissory Note #29 - 48,000 Promissory Note #30 75,000 75,000 Promissory Note #31 220,486 220,486 Promissory Note #32 300,000 - Promissory Note #33 360,000 - Promissory Note #34 75,000 - Promissory Note #35 39,255 - Promissory Note #36 30,000 - Promissory Note #37 13,500 - Promissory Note #38 25,000 - Promissory Note #39 42,000 - Promissory Note #40 55,000 - Promissory Note #41 19,194 - Promissory Note #42 25,000 - Promissory Note #43 31,500 - Promissory Note #44 35,000 - Promissory Note #45 51,861 - Promissory Note #46 75,000 - $ 1,720,641 $ 790,196 Debt discount (389,758) (234,649) Accrued interest 142,348 83,746 Total $ 1,473,231 $ 639,293 As at May 31, 2015 and November 30, 2014, convertible notes payable are recorded net of unamortized debt discount of $389,758 and $234,649 respectively. Promissory Note #6 On February 15, 2012, the Company received $20,000 cash and the Company issued a convertible promissory note in the amount of $20,000. The promissory note is unsecured, interest free and repayable upon demand. Promissory Note #7 On February 15, 2012, the Company received $20,000 cash and the Company issued a convertible promissory note in the amount of $20,000. The promissory note is unsecured, interest free and repayable upon demand. Promissory Note #8 On February 15, 2012, the Company received $20,000 cash and the Company issued a convertible promissory note in the amount of $20,000. The promissory note is unsecured, interest free and repayable upon demand. Promissory Note #10 On March 20, 2012, the Company received $30,000 cash and the Company issued a convertible promissory note in the amount of $30,000. The promissory note is unsecured, interest free and repayable upon demand. The note may be converted at the option of the holder into common stock of the Company. The fixed conversion price is $0.01 per share. Accordingly, the note may be converted into 3,000,000 common shares of the Company. The note also contains a provision whereby should the Company perform a stock split or reverse stock split, the conversion price of the note reverts to the lesser of 40% of market value at the time of conversion, or $0.01 per share. Accordingly, subsequent to the period end on June 14, 2013, this conversion provision was triggered. The Company determined that Promissory notes # 6, 7, 8, and 10 should be accounted for in accordance with FASB ASC 470-20, which addresses Accounting for Convertible Securities with Beneficial Conversion Features". During the six months endedMay 31, 2015 interest expense relating to the beneficial conversion feature of convertible notes of $0 (six months endedMay 31, 2014 - $0) was recorded in the financial statements, with a corresponding increase to additional paid in capital. Promissory Note #13 On September 12, 2012, the Company received $75,000 cash and the Company issued a convertible promissory note in the amount of $75,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on June 14, 2013. Any principal amount not paid by the maturity date bears interest at 22% per annum. During the six months endedMay 31, 2015, the Company accrued $973 (six months endedMay 31, 2014 - $1,837) in interest expense. After 180 days the note may be converted at the option of the holder into Common stock of the Company. The conversion price is defined as 50% multiplied by market price where market price is determined as the average of the lowest three bid prices during the ten trading days prior to the date of conversion. The Company determined that the embedded conversion feature would be a derivative liability based upon its variable conversion terms once the holders conversion rights were triggered. In March 2013, upon the holders option to convert becoming active, the Company recorded debt discount of $75,000, charged $1,800 to interest expense and also recorded a derivative liability of $76,800 being the fair value of the conversion feature which was determined using the Black-Scholes valuation model. The debt discount is accreted to the statement of operations using the effective interest rate method over the term on the note or to the date of conversion. The derivative liability is revalued at each reporting date to fair value. Any change in fair value is credited or charged to the statement of operations in the period. During the six months endedMay 31, 2015, the Company recorded a loss of $12,374 (six months endedMay 31, 2014 gain of $2,472) due to the change in value of the derivative liability during the period. During the six months endedMay 31, 2015, the Company issued 4,971,060 common shares upon the conversion of $8,815 of the principal balance into common stock, and $25,179 of the derivative liability was re-classified as additional paid in capital upon conversion. As of May 31, 2015, principal balance of $3,895 (May 31, 2014 - $30,140), accrued interest of $15,547 (May 31, 2014 - $9,018) and a derivative liability of $7,766 (May 31, 2014 - $29,565) was recorded. Promissory Note #15 On June 1, 2013 the Company entered into a Convertible Promissory Note with Direct Capital in the sum of $88,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on December 1, 2013. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par .001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933. During the six months endedMay 31, 2015, the Company accrued $8,142 (six months endedMay 31, 2014 - $3,510) in interest expense. A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance. During the six months endedMay 31, 2015 interest expense relating to the beneficial conversion feature of this convertible note of $0 (May 31, 2014 - $0) was recorded in the financial statements with a corresponding increase to additional paid in capital, and debt discount of $0 (six months endedMay 31, 2014 - $481) was accreted to the statement of operations. During the six months endedMay 31, 2015, the Company issued 4,225,000 common shares upon the conversion of $5,375 of the principal balance into common stock. On March 26, 2015, the Company transferred $35,000 of the note balance to Adar Bays, LLC. As of May 31, 2015, principal amount of $47,625 (May 31, 2014 - $88,000) and accrued interest of $31,012 (May 31, 2014 - $7,020) was recorded. Promissory Note #16 On July 1, 2013 the Company entered into a Convertible Promissory Note with Direct Capital in the sum of $11,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on January 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par .001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933. During the six months endedMay 31, 2015, the Company accrued $1,160 (six months endedMay 31, 2014 - $439) in interest expense. A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance. During the six months endedMay 31, 2015 interest expense relating to the beneficial conversion feature of this convertible note of $0 (May 31, 2014 - $0) was recorded in the financial statements with a corresponding increase to additional paid in capital, and debt discount of $0 (six months endedMay 31, 2014 - $1,913) was accreted to the statement of operations. During the six months endedMay 31, 2015, the Company issued 675,000 common shares upon the conversion of $675 of the principal balance into common stock. As of May 31, 2015, principal amount of $10,325 (May 31, 2014 - $11,000) and accrued interest of $3,811 (May 31, 2014 - $805) was recorded. Promissory Note #17 On August 1, 2013 the Company entered into a Convertible Promissory Note with Direct Capital in the sum of $11,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on February 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par .001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933. During the six months endedMay 31, 2015, the Company accrued $703 (six months endedMay 31, 2014 - $439) in interest expense. A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance. During the six months endedMay 31, 2015 interest expense relating to the beneficial conversion feature of this convertible note of $0 (May 31, 2014 - $0) was recorded in the financial statements with a corresponding increase to additional paid in capital, and debt discount of $0 (six months endedMay 31, 2014 - $3,766) was accreted to the statement of operations. On March 16, 2015, the Company transferred $11,000 of the principal balance and $2,262 of interest to Service Trading Company, LLC. As of May 31, 2015, principal amount of $0 (May 31, 2014 - $11,000) and accrued interest of $887 (May 31, 2014 - $731) was recorded. Promissory Note #18 On August 7, 2013 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $50,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on February 7, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par .001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933. During the six months endedMay 31, 2015, the Company accrued $3,195 (six months endedMay 31, 2014 - $1,994) in interest expense. A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance. During the six months endedMay 31, 2015 interest expense relating to the beneficial conversion feature of this convertible note of $0 (May 31, 2014 - $0) was recorded in the financial statements with a corresponding increase to additional paid in capital, and debt discount of $0 (six months endedMay 31, 2014 - $18,750) was accreted to the statement of operations. As of May 31, 2015, principal amount of $0 (May 31, 2014 - $50,000) and accrued interest of $9,003 (May 31, 2014 - $3,254) was recorded. Promissory Note #19 On September 1, 2013 the Company entered into a Convertible Promissory Note with Direct Capital in the sum of $11,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on March 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par .001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933. During the six months endedMay 31, 2015, the Company accrued $703 (six months endedMay 31, 2014 - $439) in interest expense. A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance. During the six months endedMay 31, 2015 interest expense relating to the beneficial conversion feature of this convertible note of $0 (May 31, 2014 - $0) was recorded in the financial statements with a corresponding increase to additional paid in capital, and debt discount of $0 (six months endedMay 31, 2014 - $5,530) was accreted to the statement of operations. On March 16, 2015, the Company transferred $11,000 of the principal balance and $2,262 of interest to Service Trading Company, LLC. As of May 31, 2015, principal amount of $0 (May 31, 2014 - $11,000) and accrued interest of $691 (May 31, 2014 - $656) was recorded. Promissory Note #20 On October 1, 2013 the Company entered into a Convertible Promissory Note with Direct Capital in the sum of $11,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on April 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par .001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933. During the six months endedMay 31, 2015, the Company accrued $703 (six months endedMay 31, 2014 - $439) in interest expense. A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance. During the six months endedMay 31, 2015 interest expense relating to the beneficial conversion feature of this convertible note of $0 (May 31, 2014 - $0) was recorded in the financial statements with a corresponding increase to additional paid in capital, and debt discount of $0 (six months endedMay 31, 2014 - $7,374) was accreted to the statement of operations. On March 16, 2015, the Company transferred $11,000 of the principal balance and $250 of interest to GW Holdings Group, LLC. As of May 31, 2015, principal amount of $0 (May 31, 2014 - $11,000) and accrued interest of $2,503 (May 31, 2014 - $584) was recorded. Promissory Note #21 On November 1, 2013 the Company entered into a Convertible Promissory Note with Direct Capital in the sum of $16,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on May 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par .001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933. During the six months endedMay 31, 2015, the Company accrued $1,022 (six months endedMay 31, 2014 - $639) in interest expense. A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance. During the six months endedMay 31, 2015 interest expense relating to the beneficial conversion feature of this convertible note of $0 (May 31, 2014 - $0) was recorded in the financial statements with a corresponding increase to additional paid in capital, and debt discount of $0 (six months endedMay 31, 2014 - $13,436) was accreted to the statement of operations. On March 16, 2015, the Company transferred $16,000 of the principal balance and $250 of interest to GW Holdings Group, LLC. As of May 31, 2015, principal amount of $0 (May 31, 2014 - $16,000) and accrued interest of $3,461 (May 31, 2014 - $741) was recorded. Promissory Note #22 On November 30, 2013 the Company entered into a Convertible Promissory Note with Direct Capital in the sum of $50,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on May 30, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par .001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933. During the six months endedMay 31, 2015, the Company accrued $2,381 (six months endedMay 31, 2014 - $1,994) in interest expense. A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance. During the six months endedMay 31, 2015 interest expense relating to the beneficial conversion feature of this convertible note of $0 (May 31, 2014 - $0) was recorded in the financial statements with a corresponding increase to additional paid in capital, and debt discount of $0 (six months endedMay 31, 2014 - $50,000) was accreted to the statement of operations. On February 17, 2015, the Company transferred $50,000 of the principal balance and $4,822 of interest to Union Capital, LLC. As of May 31, 2015, principal amount of $0 (May 31, 2014 - $50,000) and accrued interest of $5,088 (May 31, 2014 - $1,994) was recorded. Promissory Note #23 On December 1, 2013 the Company entered into a Convertible Promissory Note with Direct Capital in the sum of $16,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on June 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par .001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933. During the six months endedMay 31, 2015, the Company accrued $1,755 (six months endedMay 31, 2014 - $635) in interest expense. A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance. During the six months endedMay 31, 2015 interest expense relating to the beneficial conversion feature of this convertible note of $0 (May 31, 2014 - $16,000) was recorded in the financial statements with a corresponding increase to additional paid in capital, and debt discount of $0 (six months endedMay 31, 2014 - $15,955) was accreted to the statement of operations. As of May 31, 2015, principal amount of $16,000 (May 31, 2014 - $16,000) and accrued interest of $4,145 (May 31, 2014 - $635) was recorded. Promissory Note #24 On January 1, 2014 the Company entered into a Convertible Promissory Note with Direct Capital in the sum of $16,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on July 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par .001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933. During the six months endedMay 31, 2015, the Company accrued $1,755 (six months endedMay 31, 2014 - $526) in interest expense. A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance. During the six months endedMay 31, 2015 interest expense relating to the beneficial conversion feature of this convertible note of $0 (May 31, 2014 - $16,000) was recorded in the financial statements with a corresponding increase to additional paid in capital, and debt discount of $0 (six months endedMay 31, 2014 - $14,138) was accreted to the statement of operations. As of May 31, 2015, principal amount of $16,000 (May 31, 2014 - $16,000) and accrued interest of $3,856 (May 31, 2014 - $526) was recorded. Promissory Note #25 On February 1, 2014 the Company entered into a Convertible Promissory Note with Direct Capital in the sum of $16,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on August 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par .001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933. During the six months endedMay 31, 2015, the Company accrued $1,755 (six months endedMay 31, 2014 - $418) in interest expense. A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance. During the six months endedMay 31, 2015 interest expense relating to the beneficial conversion feature of this convertible note of $0 (May 31, 2014 - $16,000) was recorded in the financial statements with a corresponding increase to additional paid in capital, and debt discount of $0 (six months endedMay 31, 2014 - $11,337) was accreted to the statement of operations. As of May 31, 2015, principal amount of $16,000 (May 31, 2014 - $16,000), accrued interest of $3,557 (May 31, 2014 - $418) was recorded. Promissory Note #26 On March 1, 2014 the Company entered into a Convertible Promissory Note with Direct Capital in the sum of $16,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on September 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par .001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933. During the six months endedMay 31, 2015, the Company accrued $1,755 (six months endedMay 31, 2014 - $319) in interest expense. A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance. During the six months endedMay 31, 2015 interest expense relating to the beneficial conversion feature of this convertible note of $0 (May 31, 2014 - $16,000) was recorded in the financial statements with a corresponding increase to additional paid in capital, and debt discount of $0 (six months endedMay 31, 2014 - $7,913) was accreted to the statement of operations. As of May 31, 2015, principal amount of $16,000 (May 31, 2014 - $16,000) and accrued interest of $3,265 (May 31, 2014 - $319 was recorded. Promissory Note #27 On April 1, 2014 the Company entered into a Convertible Promissory Note with Direct Capital in the sum of $16,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on October 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par .001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933. During the six months endedMay 31, 2015, the Company accrued $1,755 (six months endedMay 31, 2014 - $210) in interest expense. A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance. During the six months endedMay 31, 2015 interest expense relating to the beneficial conversion feature of this convertible note of $0 (May 31, 2014 - $16,000) was recorded in the financial statements with a corresponding increase to additional paid in capital, and debt discount of $0 (six months endedMay 31, 2014 - $5,246) was accreted to the statement of operations. As of May 31, 2015, principal amount of $16,000 (May 31, 2014 - $0) and accrued interest of $2,976 (May 31, 2014 - $210) was recorded. Promissory Note #28 On May 1, 2014 the Company entered into a Convertible Promissory Note with Direct Capital in the sum of $16,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on November 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par .001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933. During the six months endedMay 31, 2015, the Company accrued $1,755 (six months endedMay 31, 2014 - $105) in interest expense. A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance. During the six months endedMay 31, 2015 interest expense relating to the beneficial conversion feature of this convertible note of $0 (May 31, 2014 - $16,000) was recorded in the financial statements with a corresponding increase to additional paid in capital, and debt discount of $0 (six months endedMay 31, 2014 - $2,609) was accreted to the statement of operations. As of May 31, 2015, principal amount of $16,000 (May 31, 2014 - $16,000) and accrued interest of $2,680 (May 31, 2014 - $105) was recorded. Promissory Note #29 On June 1, 2014 the Company entered into a Convertible Promissory Note with Direct Capital in the sum of $48,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on December 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par .001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933. During the six months endedMay 31, 2015, the Company accrued $4,282 (six months endedMay 31, 2014 - $0) in interest expense. A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance. During the six months endedMay 31, 2015 interest expense relating to the beneficial conversion feature of this convertible note of $0 (May 31, 2014 - $0) was recorded in the financial statements with a corresponding increase to additional paid in capital, and debt discount of $132 (six months endedMay 31, 2014 - $0) was accreted to the statement of operations. On April 27, 2015, the Company transferred $48,000 of the principal balance and $3,861 of interest to Union Capital, LLC. As of May 31, 2015, principal amount of $0 (May 31, 2014 - $0) and accrued interest of $2,335 (May 31, 2014 - $0) was recorded. Promissory Note #30 On October 1, 2014 the Company entered into a Convertible Promissory Note with Direct Capital in the sum of $75,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on April 1, 2015. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par .001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933. During the six months endedMay 31, 2015, the Company accrued $4,718 (six months endedMay 31, 2014 - $0) in interest expense. A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance. During the six months endedMay 31, 2015 interest expense relating to the beneficial conversion feature of this convertible note of $0 (May 31, 2014 - $0) was recorded in the financial statements with a corresponding increase to additional paid in capital, and debt discount of $50,275 (six months endedMay 31, 2014 - $0) was accreted to the statement of operations. As of May 31, 2015, principal amount of $75,000 (May 31, 2014 - $0), accrued interest of $5,704 (May 31, 2014 - $0) and debt discount of $0 (May 31, 2014 - $0) was recorded. Promissory Note #31 On October 1, 2014, the Company entered into a Convertible Promissory note with New Venture Attorneys, PC in the sum of $220,486. The promissory note is unsecured, bears interest at 8% per annum, and matures on October 1, 2015. The note also contains customary events of default. During the six months endedMay 31, 2015, the Company accrued $8,795 (six months endedMay 31, 2014 - $0) in interest expense. Upon the holders option to convert becoming active the Company recorded a debt discount and derivative liability of $294,767 being the fair value of the conversion feature which was determined using the Black-Scholes valuation model. The debt discount is accreted to the statement of operations using the effective interest rate method over the term of the note or to the date of conversion, and the derivative liability is revalued at each reporting date to fair value. Any change in fair value is credited or charged to the statement of operations in the period. During the six months endedMay 31, 2015, the Company recorded a loss of $111,842 (six months endedMay 31, 2014 - $0) due to the change in value of the derivative liability during the period, and a debt discount of $147,670 (six months endedMay 31, 2014 - $0) was accreted to the statement of operations. As of May 31, 2015, principal balance of $220,486 (May 31, 2014 - $0), accrued interest of $11,695 (May 31, 2014- $0), debt discount of $36,572 (May 31, 2014 - $0) and a derivative liability of $401,541 (May 31, 2014 - $0) was recorded. Promissory Note #32 On January 1, 2015 the Company entered into a Convertible Promissory Note with Direct Capital in the sum of $300,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on July 1, 2015. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par .00001 multi |