Note 4 - Convertible Notes Payable | Issue Date Expiry date Amount of Loan Note Interest rate Unamortized Debt Discount Unamortized Deferred Charges Net Carrying Amount The remaining Conversion Benefit Derivative Liability 7/31/2012 7/31/2013 30,000 10 % - - 30,000 - - 3/11/2016 3/11/2017 265,000 8 % 71,137 37,895 155,968 245,072 399,106 7/13/2016 7/16/2017 23,125 10 % 12,159 1,130 9,836 26,139 35,347 7/14/2016 4/14/2017 18,124 12 % 7,250 813 10,061 32,100 26,769 8/1/2016 8/1/2017 50,000 10 % 28,074 4,773 17,153 21,926 83,978 8/4/2016 8/4/2017 50,000 8 % 28,381 1,419 20,200 21,619 83,112 8/4/2016 8/4/2017 83,333 9 % 47,301 6,859 29,173 36,032 139,186 8/5/2016 8/5/2017 52,500 10 % 29,908 4,271 18,321 22,592 88,084 8/15/2016 8/15/2017 50,000 8 % 29,508 5,902 14,590 20,492 82,917 8/26/2016 5/26/2017 61,250 8 % 30,791 5,656 24,803 30,459 101,334 11/3/2016 5/3/2017 27,000 10 % 13,724 1,017 12,259 13,276 45,475 11/21/2016 11/21/2017 25,000 8 % 20,137 1,890 2,973 4,863 41,903 Total Loans 735,332 318,370 71,625 345,337 474,570 1,127,211 On July 31, 2012, the Company converted $40,000 in accounts payable to a convertible promissory note. The note has a 10% per annum interest rate and a maturity date of July 31, 2013. The note is currently in arrears and is due and payable on demand. The note is convertible into shares of the Company's common stock at a conversion price of $0.001. The Company is currently in default on this note. Per ASC 470-50-40-10b, as this transaction added a substantive conversion feature to the debt, we have determined debt extinguishment accounting rules apply. However, as there was no difference between the reacquisition price and the net carrying amount of the old debt, no gain or loss was recorded. The Company amortized the discount on the debt equal to the face value, in the amount of $40,000 for the year ended July 31, 2013. This discount was amortized to interest expense. During the period ended January 31, 2017, $10,000 of debt was converted into 10,000,000 shares of common stock (year ended July 31, 2016, $8,800 of debt was converted into 8,800,000 pre-split shares of common stock). We have not received any notice of default from the lender; however, we do intend to pay off the amount owed under this note in the future when we have sufficient funding. On January 22, 2016, the Company issued a $35,500 convertible promissory note. This was increased to $40,500 due to a standby agreement. The note has an 12% per annum interest rate and a maturity date of January 22, 2017. Closing costs of $9,050 are being amortized over the life of the loan. The note is convertible into shares of common stock of the Company at any time at a rate of 50% of the lowest trading price of the shares over the previous 20-day trading period. A conversion benefit of $35,500 has been recorded and is being amortized over the life of the loan. A derivative liability was calculated using Black Scholes and is estimated to be $116,548 at July 31, 2016. On August 22, 2016, the Company paid out the loan in full for $65,000. The conversion benefit recorded was reversed and the unamortized portion of the finder's fees and legal expenses deferred were expensed. On March 14, 2016, the Company issued a $535,000 convertible promissory note. Currently there is $265,000 owed on the convertible promissory note. The note has an 8% per annum interest rate and a maturity date of March 11, 2017. Closing costs of $35,000 and the $250,000 loan discount are being amortized over the life of the loan. The note is convertible into shares of common stock of the Company at any time at a rate of 50% of the lowest trading price of the shares over the previous 20-day trading period. On July 12, 2016, $200,000 of the promissory note and $16,000 of the accrued interest payable was paid out by the Company by issuing 3,240,000 common shares of the Company. During December 2016 and January 2017, $70,000 of the promissory note was converted into 19,455,499 shares of common stock. The remaining conversion benefit of $245,072 is being amortized over the life of the loan. A derivative liability has been calculated using Black Scholes and is estimated to be $399,106 as at January 31, 2017. On July 14, 2016, the Company issued a $53,500 convertible promissory note. On January 17, 2017, $35,376 of the promissory note was converted into 12,792,324 shares of common stock. Currently there is $18,124 owned on the convertible promissory note. The note has an 12% per annum interest rate and a maturity date of April 14, 2017. Closing costs of $6,000 are being amortized over the life of the loan. The note is convertible into shares of common stock of the Company at any time at a rate of 50% of the lowest trading price of the shares over the previous 20-day trading period. A conversion benefit of $32,100 has been recorded and is being amortized over the life of the loan. A derivative liability has been calculated using Black Scholes and is estimated to be $26,769 as at January 31, 2017. On July 16, 2016, the Company issued a $55,125 convertible promissory note. On January 17, 2017, $32,000 of the promissory note was converted into 11,500,000 shares of common stock. Currently there is $23,125 owned on the convertible promissory note. The note has an 10% per annum interest rate and a maturity date of July 16, 2017. Closing costs of $5,125 are being amortized over the life of the loan. The note is convertible into shares of common stock of the Company at any time at a rate of 50% of the lowest trading price of the shares over the previous 20-day trading period. The remaining conversion benefit of $26,139 is being amortized over the life of the loan. A derivative liability has been calculated using Black Scholes and is estimated to be $35,347 as at January 31, 2017. On August 1 2016, the Company issued a $50,000 convertible promissory note. The note has an 10% per annum interest rate and a maturity date of August 1, 2017. Closing costs of $8,500 are being amortized over the life of the loan. The note is convertible into shares of common stock of the Company at any time at a rate of 50% of the lowest trading price of the shares over the previous 20-day trading period. The remaining conversion benefit of $21,926 is being amortized over the life of the loan. A derivative liability has been calculated using Black Scholes and is estimated to be $83,978 at January 31, 2017. On August 4, 2016, the Company issued a $83,333 convertible promissory note. The note has an 9 % per annum interest rate and a maturity date of August 4, 2017. Closing costs of $12,083 are being amortized over the life of the loan. The note is convertible into shares of common stock of the Company at any time at a rate of 55% of the lowest trading price of the shares over the previous 20-day trading period. The remaining conversion benefit of $36,032 is being amortized over the life of the loan. A derivative liability has been calculated using Black Scholes and is estimated to be $139,186 at January 31, 2017. On August 4, 2016, the Company issued a $50,000 convertible promissory note. The note has an 8% per annum interest rate and a maturity date of August 4, 2017. Closing costs of $2,500 are being amortized over the life of the loan. The note is convertible into shares of common stock of the Company at any time at a rate of 55% of the lowest trading price of the shares over the previous 20-day trading period. The remaining conversion benefit of $21,619 is being amortized over the life of the loan. A derivative liability has been calculated using Black Scholes and is estimated to be $83,112 at January 31, 2017. On August 5, 2016, the Company issued a $52,500 convertible promissory note. The note has an 8% per annum interest rate and a maturity date of August 5, 2017. Closing costs of $7,500 are being amortized over the life of the loan. The note is convertible into shares of common stock of the Company at any time at a rate of 55% of the lowest trading price of the shares over the previous 20-day trading period. The remaining conversion benefit of $22,592 is being amortized over the life of the loan. A derivative liability has been calculated using Black Scholes and is estimated to be $88,084 at January 31, 2017. On August 15, 2016, the Company issued a $50,000 convertible promissory note. The note has an 8% per annum interest rate and a maturity date of August 15, 2017. Closing costs of $10,000 are being amortized over the life of the loan. The note is convertible into shares of common stock of the Company at any time at a rate of 55% of the lowest trading price of the shares over the previous 20-day trading period. The remaining conversion benefit of $20,492 is being amortized over the life of the loan. A derivative liability has been calculated using Black Scholes and is estimated to be $82,917 at January 31, 2017. On August 26, 2016, the Company issued a $61,250 convertible promissory note. The note has an 8% per annum interest rate and a maturity date of May 26, 2017. Closing costs of $11,250 are being amortized over the life of the loan. The note is convertible into shares of common stock of the Company at any time at a rate of 60% of the lowest trading price of the shares over the previous 20-day trading period. The remaining conversion benefit of $30,459 is being amortized over the life of the loan. A derivative liability has been calculated using Black Scholes and is estimated to be $101,334 at January 31, 2017. On November 3, 2016, the Company issued a $27,000 convertible promissory note. The note has an 10% per annum interest rate and a maturity date of May 3, 2017. Closing costs of $2,000 are being amortized over the life of the loan. The note is convertible into shares of common stock of the Company at any time at a rate of 60% of the lowest trading price of the shares over the previous 20-day trading period. A conversion benefit of $27,000 has been recorded and is being amortized over the life of the loan. A derivative liability has been calculated using Black Scholes and is estimated to be $45,475 at January 31, 2017. On November 21, 2016, the Company issued a $25,000 convertible promissory note. The note has an 8% per annum interest rate and a maturity date of November 21, 2017. Closing costs of $2,500 are being amortized over the life of the loan. The note is convertible into shares of common stock of the Company at any time at a rate of 60% of the lowest trading price of the shares over the previous 20-day trading period. A conversion benefit of $25,000 has been recorded and is being amortized over the life of the loan. A derivative liability has been calculated using Black Scholes and is estimated to be $41,903 at January 31, 2017. . |