Note 4 - Convertible Notes Payable | Issue Date Expiry date Amount of Loan Note Interest rate Unamortized Debt Discount Unamortized Deferred Charges Net Carrying Amount 7/31/2012 7/31/2013 30,000 10 % - - 30,000 3/11/2016 3/11/2017 118,697 18 % 31,833 25,150 61,714 8/1/2016 8/1/2017 6,876 8 % - - 6,876 8/5/2016 8/5/2017 10,200 8 % 6,489 3,157 554 08/26/16 05/26/17 19,554 8 % - - 19,554 11/3/2016 5/3/2017 27,000 8 % 448 33 26,519 11/21/2016 11/21/2017 25,000 10 % 14,041 1,280 9,679 2/1/2017 10/31/2017 52,500 10 % 35,515 1,728 15,257 2/1/2017 11/1/2017 65,000 10 % 44,048 2,697 18,255 2/2/2017 2/2/2018 55,125 10 % 41,986 2,626 10,513 Total Loans 409,952 174,360 36,671 198,921 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. This discount was amortized to interest expense. During the period ended April 30, 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. On August 22, 2016, the Company paid out the loan in full for $65,000. On March 14, 2016, the Company issued a $535,000 convertible promissory note. The note has an 8% per annum interest rate and expired on March 14,2017. 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 the nine-month period ended April 30,2017, $216,303 principal balance of the promissory note was converted into 922,614,474 shares of common stock. A derivative liability has been calculated using Black Scholes and is estimated to be $32,928 as at April 30, 2017. Currently there is $118,697 owed on the convertible promissory note which is currently past due and a default notice was received by the Company which increased the interest rate to 18% as of March 14,2017. On July 14, 2016, the Company issued a $53,500 convertible promissory note. The note has an 12% per annum interest rate and a maturity date of April 14, 2017. 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. During the nine months ended April 30,2017 the entire balance of the loan was converted into 23,743,494 shares of common stock. On July 16, 2016, the Company issued a $55,125 convertible promissory note. The note has an 10% per annum interest rate and a maturity date of July 16, 2017. 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. During the nine months ended April 30,2017 the entire balance of the loan was converted into 38,342,830 shares of common stock. 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. 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. During the nine months ended April 30,2017, $43,124 principal balance of the loan was converted into 835,154,475 shares of common stock leaving a balance of $6,876 as of April 30,2017. 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. 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. During the nine months ended April 30,2017, the entire principal balance of the loan was converted into 374,022,432 shares of common stock. 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. 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. During the nine months ended April 30,2017, the entire principal balance of the loan was converted into 432,459,088 shares of common stock. 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. During the nine -month period ended April 30, 2017 $42,300 principal balance was converted into 292,551,774 shares of common stock leaving a balance of $10,200. The remaining conversion benefit of $6,489 is being amortized over the life of the loan. A derivative liability has been calculated using Black Scholes and is estimated to be $6,719 at April 30, 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. 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. During the nine months ended April 30,2017, the entire principal balance of the loan was converted into 523,396,666 shares of common stock. 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. During the nine months ended April 30,2017, $41,696 of the principal balance of the loan was converted into 535,501,767 shares of common stock leaving a balance of $19,554. 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 $39,616 at April 30, 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 $36,072 at April 30, 2017. On February 1, 2017, the Company issued a $52,500 convertible promissory note. The note has an 10% per annum interest rate and a maturity date of October 31, 2017. Closing costs of $5,000 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 $52,500 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 $99,319 at April 30, 2017. On February 1, 2017, the Company issued a $65,000 convertible promissory note. The note has an 10% per annum interest rate and a maturity date of November 1, 2017. Closing costs of $7,750 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 $65,000 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 $106,835 at April 30, 2017. On February 1, 2017, the Company issued a $55,125 convertible promissory note. The note has an 10% per annum interest rate and a maturity date of November 1, 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 60% of the lowest trading price of the shares over the previous 20-day trading period. A conversion benefit of $55,125 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 $104,285 at April 30, 2017. |