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Note Payable to Shareholder
12 Months Ended
Aug. 31, 2016
Debt Disclosure [Abstract]  
Note Payable to Shareholder

Note 5. Note Payable to Shareholder

 

On January 9, 2014, the Company issued a $70,000 note payable to a shareholder of the Company. The note payable bears interest at an annual rate of 7%. Principal and accrued interest on the note payable were due on January 9, 2016, with a default annual rate of 10% interest after that date. The outstanding balance of principal and accrued interest may be prepaid without penalty. During the years ended August 31, 2016 and August 31, 2015, the Company recorded an interest expense of $6,267 and $4,900, respectively, related to the note payable. Accrued interest at August 31, 2016 related to the note payable was $14,308. At August 31, 2016, the original principal balance of $70,000 on the note payable remained outstanding. The note payable was note repaid on January 9, 2016 and is thus in default as of the date of this filing.