4. Related party transactions | 12 Months Ended |
Jul. 31, 2014 |
Related Party Transactions [Abstract] | |
Related party transactions | Accrued liabilities |
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At July 31, 2014 and 2013, accrued liabilities totaled $18,041 and $4,723, respectively. During the 2013 fiscal year the CEO incurred $8,321 expenses related to Company efforts. The CEO forgave accrued expenses of $108,844 in exchange for convertible promissory notes totaling $45,500 in value, including amounts related to Accrued Liabilities forgiven. The difference was recorded to Paid In Capital on the balance sheet. The increase of $13,318 represents accrued interest expense on notes payable to related parties for 2014. |
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Notes payable |
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During May 2010, the Company issued a convertible promissory note to a related party in exchange for $50,000. The note bears interest at 9% and the principal and accrued interest is convertible into common shares at $.04 per share upon the election of the holder. The note also provides for renewal in 120-day cycles, assuming issuing of common stock as a renewal premium. This note was exchanged in April 2013 for new promissory notes bearing interest at 10% and convertible into common shares at $.01 per share with a 120-day renewal cycle and identical renewal premium. The new promissory notes allow the Company to call the note and pay it off, a feature not available in the prior promissory note. |
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During December 2010, the Company issued a convertible promissory note to a related party in exchange for $15,000. The note bears interest at 9% and the principal and accrued interest is convertible into common shares at $.04 per share upon the election of the holder. The note also provides for renewal in 120-day cycles, assuming issuing of common stock as a renewal premium. This note was exchanged in April 2013 for new promissory notes |
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bearing interest at 10% and convertible into common shares at $.01 per share with a 120-day renewal cycle and identical renewal premium. The new promissory notes allow the Company to call the note and pay it off, a feature not available in the prior promissory note. |
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During May 2011, the Company issued two convertible promissory notes to related parties in exchange for a total of $4,000. The notes bear interest at 10% and the principal and accrued interest is convertible into common shares at $.07 per share upon the election of the holder. In November 2011 these notes were exchanged for new convertible promissory notes totaling $4,173 in principal and accrued interest. |
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During November 2011, the Company issued two convertible promissory notes to related parties in exchange for $4,173 of principal and accrued interest on due promissory notes. The notes bear interest at 10% and the principal and accrued interest is convertible into common shares at $.07 per share upon the election of the holders, as did the notes being replaced. Based on the initial valuation the Company has recorded a debt discount of $2,340, all of which was amortized in the fiscal year ending July 31, 2012. The original maturity date on these notes was April 30, 2012. The holders have extended both notes to July 31, 2015. |
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During April 2012, the Company issued a convertible promissory note to a related party in exchange for a total of $5,000. The note bears interest at 10% and the principal and accrued interest is convertible into common shares at $.04 per share upon the election of the holder. Based on the initial valuation the Company has recorded a debt discount of $1,250, $831 of which was amortized in the fiscal year ended July 31, 2012 and the remaining $419 amortized in the fiscal year ending July 31, 2013. The original maturity date on this note was September 30, 2012. The holder has extended the note to July 31, 2015. |
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During December 2012, the Company issued two promissory notes to two related parties totaling $2,000. The notes bear interest at 10% and the principal and accrued interest are convertible into common shares at $.01 per share. Based on the initial valuation the Company has recorded a debt discount of $2,000, all of which was amortized in the fiscal year ending July 31, 2013. The original maturity date on these notes was June 30, 2013. The holders have extended the notes to July 31, 2015. |
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During February 2013, the Company issued one promissory note to a related party for $500. The note bears interest at 10% and the principal and accrued interest are convertible into common shares at $.01 per share. This note was related to company expenses paid. Based on the initial valuation the Company has recorded a debt discount of $500, $427 of which was amortized in the fiscal year ended July 31, 2013 and the remaining $73 amortized in the fiscal year ending July 31, 2014. The original maturity date on this note was August 31, 2013. The holder has extended the note to July 31, 2015. |
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During April 2013, the Company issued five convertible promissory notes to related parties in exchange for two promissory notes totaling $65,000. The notes bear interest at 10% and the principal and accrued interest is convertible into common shares at $.01 per share upon the election of the holder. These notes have a 120-day term and are renewed with payment of accrued interest in common stock as well as a renewal fee of 455,000 shares. The common shares for this renewal fee were issued May 14, 2013 and valued at $13,577. These notes were replaced through renewal in July 2013. |
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During July 2013, the Company issued one promissory note to a related party for $28,500. The note bears interest at 10% and the principal and accrued interest are convertible into common shares at $.01 per share. This note was in exchange for accrued and owed salary of $241,875 and accrued and owed expense of $108,844. Based on the initial valuation the Company has recorded a debt discount of $28,500, all of which was amortized in the fiscal year ended July 31, 2014. The original maturity date on this note was January 31, 2014. The holder has extended the note to July 31, 2015. |
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During July 2013, the Company issued one promissory note to a related party for $17,000. The note bears interest at 10% and the principal and accrued interest are convertible into common shares at $.01 per share. This note was in exchange for accrued and owed salary of $168,750 to the Company's former CFO. Based on the initial valuation the Company has recorded a debt discount of $17,000, all of which was amortized in the fiscal year ended July 31, 2013. The original maturity date on this note was January 31, 2014. The holder has extended the note to July 31, 2015. |
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During July 2013, the Company issued five convertible promissory notes to related parties in exchange for five promissory notes totaling $65,000. The notes bear interest at 10% and the principal and accrued interest is convertible into common shares at $.01 per share upon the election of the holder. These notes have a 120-day term and are renewed with payment of accrued interest in common stock as well as a renewal fee of 455,000 shares. The common shares for this renewal fee were issued August 5, 2013 and valued at $26,845. These notes matured December 11, 2013 and the holders chose not to renew per the note terms. The notes are in default and payable on demand of the holders. |
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During December 2013, the Company issued two promissory notes to two related parties totaling $16,000. The notes bear interest at 10% and the principal and accrued interest are convertible into common shares at $.01 per share. Based on the initial valuation the Company has recorded a debt discount of $16,000, all of which was amortized in the fiscal year ending July 31, 2014. The original maturity date on these notes was May 31, 2014. The holders have extended the notes to July 31, 2015. |
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During June 2014, the Company issued one promissory note to a related party for $2,000. The note bears interest at 10% and the principal and accrued interest are convertible into common shares at $.01 per share. Based on the initial valuation the Company has recorded a debt discount of $2,000, $659 of which was amortized in the fiscal year ended July 31, 2014. The original maturity date on this note was November 30, 2014. The holder has extended the note to July 31, 2015. |
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As of July 31, 2014, the Company had outstanding convertible promissory notes to nine related parties totaling $140,173. The notes bear interest at 10% and the principal and accrued interest is convertible into common shares, with $4,173 convertible at $.07 per share, $5,000 convertible at $.04 per share and $131,000 convertible at $.01 per share upon the election of the holder. The Company reported Debt Discount of $69,838 on these notes of which $3,171, $2,846 and $62,480 amortized in the fiscal years ended July 31, 2012, July 31, 2013 and July 31, 2014, respectively. $1,341 of Debt Discount remains unamortized as of July 31, 2014. |
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Preferred stock |
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The Company issued no Preferred stock for the fiscal years ending July 31, 2014 and 2013 respectively. |
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Common stock |
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In August 2012, the Company issued 116,250 shares of the Company's common stock in exchange for accrued interest and an extension of due date from July 25, 2012 to November 22, 2012 on a note payable. The shares related to the accrued interest were issued at $.04 per share and the shares related to the extension were issued at $.01 per share (fair market value) on the day they were granted, per the terms of the agreement. This amount ($1,500) is reflected in the accompanying financial statements as interest. |
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In September 2012, the Company issued 387,500 shares of the Company's common stock in exchange for accrued interest and an extension of due date from September 12, 2012 to January 10, 2013 on a note payable. The shares related to the accrued interest were issued at $.04 per share and the shares related to the extension were issued at $.01 per share (fair market value) on the day they were granted, per the terms of the agreement. This amount ($5,000) is reflected in the accompanying financial statements as interest. |
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In December 2012, the Company issued 116,250 shares of the Company's common stock in exchange for accrued interest and an extension of due date from November 22, 2012 to January 10, 2013 on a note payable. The shares related to the accrued interest were issued at $.04 per share and the shares related to the extension were issued at $.03 per share (fair market value) on the day they were granted, per the terms of the agreement. This amount ($3,488) is reflected in the accompanying financial statements as interest. |
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In February 2013, the Company issued 387,500 shares of the Company's common stock in exchange for accrued interest and an extension of due date from January 10, 2013 to May 10, 2013 on a note payable. The shares related to the accrued interest were issued at $.04 per share and the shares related to the extension were issued at $.03 per share (fair market value) on the day they were granted, per the terms of the agreement. This amount ($11,625) is reflected in the accompanying financial statements as interest. |
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In March 2013, the Company issued 116,250 shares of the Company's common stock in exchange for accrued interest and an extension of due date from March 22, 2013 to July 20, 2013 on a note payable. The shares related to the accrued interest were issued at $.04 per share and the shares related to the extension were issued at $.05 per share (fair market value) on the day they were granted, per the terms of the agreement. This amount ($3,600) is reflected in the accompanying financial statements as interest. |
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In May 2013, the Company issued 330,021 shares of the Company's common stock in exchange for accrued interest and an exchange for replacement on two notes payable. The shares related to the accrued interest were issued at $.04 per share and the shares related to the extension were issued at $.05 per share (fair market value) on the day they were granted, per the terms of the agreement. This amount ($16,182) is reflected in the accompanying financial statements as interest. |
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In August 2013, the Company issued 503,750 shares of the Company's common stock in exchange for accrued interest and an extension of due date on five notes payable. The shares related to the accrued interest were issued at $.01 per share and the shares related to the extension were issued at $.06 per share (fair market value) on the day they were granted, per the terms of the agreement. This amount ($30,225) is reflected in the accompanying financial statements as interest. |
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In September 2013, the Company issued 167,917 shares of the Company's common stock in exchange for additional accrued interest on five notes payable. The shares related to the accrued interest were issued at $.01 per share and the shares related to the extension were issued at $.06 per share (fair market value) on the day they were granted, per the terms of the agreement. This amount ($10,075) is reflected in the accompanying financial statements as interest. |
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In March 2014, the Company issued 300,000 shares of common stocks to independent Directors as compensation for services provided. These shares, approved August 2011, were previously recorded as stock payable. |
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