Note 7 - Related Party Transactions | 9 Months Ended |
Jul. 31, 2014 |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
NOTE 7 – RELATED PARTY TRANSACTIONS |
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The Company has entered into various convertible loan agreements with related parties including officers and directors. The principal amount of the loans plus any accrued and unpaid interest shall be due and payable in full one year from the advancement date of each loan. The related parties may provide the Company with written notice of conversion at any time to exercise their rights of conversion in respect of either a portion of or the total outstanding amount of each loan plus accrued interest as of that date into shares of the Company. |
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On September 1, 2012 the Company entered into consulting agreements with officers and directors. Under the terms of the agreement compensation for the provision of services for the 14 months prior to the effective date shall be $125,000 and the issuance of 1,250,000 shares of common stock of the Company. The cash portion plus any accrued and unpaid interest shall be due and payable in one full year from the date of the agreement. The officers and directors may provide the Company with written notice of conversion in respect of either a portion of or the total outstanding amount of the loan plus accrued interest as of that date into shares of the Company at the price of $0.10 per share. The loan shall bear interest at a rate of 5% per annum. |
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Additionally, compensation per the agreements is $17,000 per month. The cash portion shall continue to accrue and interest shall accrue on the unpaid balance of the cash portion at a rate of 5% per annum. The officers and directors may provide the Company with written notice of conversion of all accrued and unpaid compensation including interest, payable in common shares of the company based on the price of 80% of the average closing prices for the five trading days prior to the end of the one year term. |
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Additional information on these agreements as of July 31, 2014 and October 31, 2013 is as follows: |
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| | Loan Balance Including Accrued Interest | |
Loan Agreement | | 31-Jul-14 | | | 31-Oct-13 | |
On May 26, 2012 agreements were formalized for the advancement of $104,000, accruing interest at 8.0%, with a conversion price of $0.06 per share. Accrued interest as of 7/31/14 was $11,811 | | $ | 105,070 | | | $ | 101,215 | |
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On July 16, 2012 an agreement was formalized for the advancement of $50,000, accruing interest at 8.0%, with a conversion price of $0.08 per share. Accrued interest as of 7/31/14 was $8,175. | | | 58,175 | | | | 55,184 | |
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On August 30, 2012 an agreement was formalized for the advancement of $100,000, accruing interest at 8.0%, with a conversion price of $0.10 per share. Accrued interest as of 7/31/14 was $1,636. | | | 37,010 | | | | 63,591 | |
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On September 1, 2012 an agreement was entered (see consulting agreement above) totaling $125,000, accruing interest at 5%, with a conversion price of $0.10 per share. Accrued interest as of 7/31/14 was $11,969. | | | 136,969 | | | | 132,295 | |
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On September 1, 2012 an agreement was entered (see consulting agreement above) totaling $17,000 per month, accruing interest at 5%, with an unknown future conversion price. Accrued interest as of 7/31/14 was $17,915. | | | 408,915 | | | | 244,465 | |
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On September 21, 2012 an agreement was formalized for the advancement of $15,000, accruing interest at 8.0%, with a conversion price of $0.10 per share. Accrued interest as of 7/31/14 was $2,232. | | | 17,232 | | | | 16,335 | |
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On December 11, 2012 an agreement was formalized for the advancement of $40,000, accruing interest at 8.0%, with a conversion price of $0.10 per share. Accrued interest as of 7/31/14 was $5,243. | | | 45,243 | | | | 42,849 | |
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On June 14, 2013 an agreement was formalized for the advancement of $35,000, accruing interest at 8.0%, with a conversion price of $0.10 per share. Accrued interest as of 7/31/14 was $3,161. | | | 38,161 | | | | 36,066 | |
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On July 19, 2013 an agreement was formalized for the advancement of $60,000, accruing interest at 8.0%, with a conversion price of $0.10 per share. Accrued interest as of 7/31/14 was $4,958. | | | 64,958 | | | | 61,368 | |
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On August 26, 2013 an agreement was formalized for the advancement of $60,000, accruing interest at 8.0%, with a conversion price of $0.10 per share. Accrued interest as of 7/31/14 was $4,471. | | | 64,471 | | | | 60,881 | |
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On February 27, 2014 an agreement was formalized for the advancement of $10,000, accruing interest at 8.0%, with a conversion price of $0.10 per share. Accrued interest as of 7/31/14 was $340. | | | 10,340 | | | | - | |
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On March 27, 2014 an agreement was formalized for the advancement of $3,000, accruing interest at 8.0%, with a conversion price of $0.10 per share. Accrued interest as of 7/31/14 was $84. | | | 3,084 | | | | - | |
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On April 17, 2014 an agreement was formalized for the advancement of $5,000, accruing interest at 8.0%, with a conversion price of $0.10 per share. Accrued interest as of 7/31/14 was $116. | | | 5,116 | | | | | |
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On May 19, 2014 an agreement was formalized for the advancement of $17,500, accruing interest at 8.0%, with a conversion price of $0.025 per share. Accrued interest as of 7/31/14 was $284. | | | 17,784 | | | | - | |
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On June 26, 2014 an agreement was formalized for the advancement of $1,500, accruing interest at 8.0%, with a conversion price of $0.02 per share. Accrued interest as of 7/31/14 was $12. | | | 1,512 | | | | - | |
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Total Convertible Loans Payable to Related Parties | | $ | 1,014,040 | | | $ | 814,249 | |
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The Company is in debt to officers and directors of the Company for an additional $23,133 and $18,667 as of July 31, 2014 and October 31, 2013, respectively. The additional related party indebtedness is unsecured, non-interest bearing, and due on demand. |
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Furthermore, the Company’s officers and directors have material interests in Bowerman Holdings, LLC and Natchez Pass, LLC. Activity with these entities is described in Note 3. |