4. Related Party Transactions

6 Months Ended

Jan. 31, 2013

Related Party Transactions Disclosure [Text Block]

Note 4. Related Party Transactions

The Company’s former Chief Executive Officer and former Chief Financial Officer advanced funds to the Company for working capital needs in the amount of $64,886 as of January 31, 2013, and July 31, 2012, respectively.  The amounts were non-interest bearing, unsecured, with no stated terms or repayment.

The aforementioned officer has pledged his support to fund temporary cash requirements for continuing operations; however there is no written commitment to this effect.  The Company is dependent upon the continued support of its officers and controlling shareholders while the Company is in its development stage.

In December, 2012, the Company borrowed $350,000 from two of its officers and an outside director.  These notes accrue interest at 6.0% per year and are due December, 2013.

Prior to fiscal 2009, and though the date of the Belmont Agreement (See Note 8), a former officer of the Company advanced funds to the Company for working capital needs.  The amounts were non-interest bearing, unsecured, with no stated terms or repayment.  Concurrent with the Belmont Agreement, the former officer forgave the advances aggregating $28,816.