Convertible Promisory Notes Payable | 3 Months Ended |
Oct. 31, 2014 |
Notes to Financial Statements | |
2. Convertible Promisory Notes Payable | The Company has a promissory note payable of $18,422 (plus a valuation allowance of $239,486, or a total promissory note payable of $257,908) as of October 31, 2014 owing to a former director of the Company (July 31, 2013 - $18,422 in advances payable to related parties). On March 21, 2014 the Company restructured advances payable to a related party of $18,422 into a convertible promissory note agreement. The note is unsecured, payable on demand, and does not bear any interest. The note, or any part thereof, can be converted to one common share of the Company for each $0.01 outstanding in principal. At conversion, the maximum number of shares that will be issued is 1,842,200. The Company recorded a beneficial conversion feature of $165,800 resulting from these issuances as the conversion price was less than the market price as of October 31, 2014. The beneficial conversion feature of $239,486 has been recorded as finance charges on the Statements of Operations. |
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On October 5, 2011, the Company issued convertible promissory notes with principal balances of $60,000 (plus a valuation allowance of $260,000 or total promissory notes payable of $320,000). The notes are unsecured, payable on demand, and do not bear any interest. The notes, or any part thereof, can be converted to one common share of the Company for each $0.03 outstanding in principal. At conversion, the maximum number of shares that will be issued is 2,000,000. The Company recorded a beneficial conversion feature of $260,000 resulting from these issuances as the conversion price was less than the market price as at October 31, 2014. The beneficial conversion feature of $260,000 has been recorded as finance charges on the Statements of Operations. |
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On June 20, 2014, the Company issued convertible promissory notes with principal balances of $100,000 (plus a valuation allowance of $130,000 or total promissory notes payable of $230,000). The notes are unsecured, payable on demand, and do not bear any interest. The notes, or any part thereof, can be converted to one common share of the Company for each $0.10 outstanding in principal. At conversion, the maximum number of shares that will be issued is 1,000,000. The Company recorded a beneficial conversion feature of $130,000 resulting from these issuances as the conversion price was less than the market price as at October 31, 2014. The beneficial conversion feature of $130,000 has been recorded as finance charges on the Statements of Operations. |