Notes Payable

9 Months Ended

May 31, 2017

Debt Disclosure [Abstract]

Notes Payable

NOTE 4 – NOTES PAYABLE

The Company has notes payable as of May 31, 2017 are as follows:

	May 31, 2017
Notes payable and convertible notes payable	Principal		Debt Discount		Principal
Shelton Davis (1)	$	25,000	$	-	$	25,000
William Bodenheimer III (1)		30,000		-		30,000
Peter Sherman (1)		12,500		-		12,500
Steven Sass (1)		25,000		-		25,000
Alkmini Anastasiadou		317,000		-		317,000
	$	409,500	$	-	$	409,500

(1) Convertible

On July 27, 2016, the Company executed a convertible promissory note with Shelton Avery Davis, as part of a private offering, for $25,000. The note has a maturity date of July 27, 2017 and bears interest of 10% which accrues. The note converts into common stock at $0.25 per share. As of May 31, 2017, $1,870 of interest has been accrued.

On September 30, 2016, the Company executed a convertible promissory note with William Bodenheimer III, as part of a private offering, for $30,000. The note has a maturity date of September 30, 2017 and bears interest of 10% which accrues. The note converts into common stock at $0.25 per share. As of May 31, 2017, $2,005 of interest has been accrued.

On October 4, 2016, the Company executed a convertible promissory note with Peter Sherman, as part of a private offering, for $12,500. The note has a maturity date of October 4, 2017 and bears interest of 10% which accrues. The note converts into common stock at $0.25 per share. As of May 31, 2017, $822 of interest has been accrued.

On December 8, 2016, the Company executed a convertible promissory note with Steven Sass, as part of a private offering, for $25,000. The note has a maturity date of December 8, 2017 and bears interest of 10% which accrues. The note converts into common stock $0.25 per share. As of May 31, 2017, $1,199 of interest has been accrued.

The Company has notes payable to related parties, net of discounts, as of May 31, 2017 and August 31, 2016, as follows:

	May 31, 2017							August 31, 2016
Notes payable to related parties, net of discounts	Principal		Debt Discount			Principal		Principal		Debt Discount		Principal
Ralph Salvagno	$	153,011	$	-		$	153,011	$	153,011	$	-	$	153,011
Dreadnought 1906, Inc.		150,000		(62,500	)		87,500		-		-		-
Ralph Salvagno		59,852					59,852		-		-		-
Ralph Salvagno		24,830					24,830		-		-		-
Ralph Salvagno		98,665		-			98,665		-		-		-
	$	486,358	$	(62,500	)	$	423,858	$	153,011	$	-	$	153,011

On August 31, 2016, the Company executed a promissory note with Ralph Salvagno (“Salvagno”), the Company’s CEO and Director, for $153,011. The note is due on demand and bears interest at 2% per annum which accrues. As of May 31, 2017, $2,297 of interest has been accrued. See Note 5.

On October 25, 2016, the Company executed a promissory note with Dreadnought 1906, Inc., which is controlled by Vyvyan Campbell (“Campbell”), the Company’s Director, for $150,000. The note matures on November 1, 2017 and bears interest at 10% per annum which accrues. As an incentive for the issuance of the note, 250,000 shares of common stock were issued and recorded as a debt discount. The shares were valued at $150,000 for the debt discount. As of May 31, 2017, $9,000 of interest has been accrued and $87,500 of the debt discount amortized. See Note 5.

On January 14, 2017, the Company executed a promissory note with Salvagno for $59,852. The note converted various payables to Salvagno. The note is due on demand and bears interest at 4% per annum which accrues. As of May 31, 2017, $905 of interest has been accrued. See Note 5.

On March 18, 2017, the Company executed a promissory note with Salvagno for $24,830. The note converted various payables to Salvagno. The note is due on demand and bears interest at 4% per annum which accrues. As of May 31, 2017, $204 of interest has been accrued. See Note 5.

On May 15, 2017, the Company entered into a settlement agreement with Arthur G. Mikaelian, et al (see Note 7 for all parties, the “Settlement Agreement”). Mikaelian had a financial obligation to Alkmini Anastasiadou (“Anastasiadou”), which was unrelated to the Company. As part of the Settlement Agreement, the Company would assume the debt of Mikaelian to Anastasiadou, as settlement between them, of $322,000, in a promissory note (the “Anastasiadou Note”). The terms of the Anastasiadou Note are 3% interest, with installment payments of $5,000 monthly beginning June 1, 2017 with payment in full by December 31, 2017. As of May 31, 2017, the balance of the note was $322,000 and the accrued interest was $423. In connection with the settlement, the Company issued $322,000 in notes payable, reversed accounts payable of $110,400 and recorded a loss of $211,600.

On May 31, 2017, the Company executed a promissory note with Salvagno for $98,665. The note converted various payables to Salvagno. The note is due on demand and bears interest at 4% per annum which accrues. As of May 31, 2017, $5 of interest has been accrued. See Note 5.