Note 9 - Due to Related Parties and Related Party Transactions

12 Months Ended

Jul. 31, 2019

NOTE

DUE TO RELATED PARTIES AND RELATED PARTY TRANSACTIONS

During Fiscal

2019,

we incurred

$149,692,

(Fiscal

2018:

$148,081;

and Fiscal

2017:

$174,299

) in general and administrative costs paid to Blender Media Inc. (“Blender”), a company controlled by Arash Adnani, a direct family member of our President and Chief Executive Officer, for various services including information technology, corporate branding, media, website design, maintenance and hosting, provided to our Company.

During Fiscal

2018

and Fiscal

2017,

we issued

104,706

and

148,368

shares with a fair value of

$141,678

and

$170,060,

respectively, as settlement of the equivalent amounts owed to Blender. As a result,

gain or loss on settlement of liabilities was recognized on the consolidated statements of operations and comprehensive loss.

July 31, 2019,

amounts owed to Blender totaled

$68,680

(

July 31, 2018:

$807

). These amounts are unsecured, non-interest bearing and due on demand.

During the

three

months ended

October 31, 2018,

the Company advanced

$152,184

(

CA$200,000

) to Arash Adnani, for and on behalf of Blender, in anticipation for various advertising and media buying services to be provided to the Company both during and after that period. Subsequently, during the

three

months ended

January 31, 2019,

the advanced funds were returned to the Company in full as the intended services were

not

required and rendered as originally anticipated. As a result, the amount due from Arash Adnani/Blender was

$Nil

as of

July 31, 2019.

During Fiscal

2019,

we closed the Royalty Purchase Agreement and received

12,000,000

Consideration Shares of URC. Referred to Note

Equity-accounted Investment to the Consolidated Financial Statements for Fiscal

2019.