Related Party Transactions

3 Months Ended

Apr. 30, 2015

Notes

Related Party Transactions

NOTE 4: Related Party Transactions

As of April 30, 2015 and January 31, 2015, related parties are due a total of $255,795 and $244,295, respectively, which is comprised of $196,045 and $186,045, respectively, in cash loans to the Company, and $59,750 and $58,250, respectively, in accrued compensation.

Related party transactions consist of the following:

	April 30, 2015		January 31, 2015
Related party payable-compensation	$	59,750	$	58,250
Notes payable for loans to the Company		22,000		22,000
Convertible notes payable for loans to the Company		174,045		164,045
Total related party loans		196,045		186,045
Total related party transactions	$	255,795	$	244,295

Related party notes payable consists of an unsecured promissory note in the principal sum of $22,000 for cash loans made to the Company as of April 30, 2015 and January 31, 2015.  The note bears interest at a rate of 5% per annum and is due within ninety (90) days of written demand.  Interest in the amount of $1,633 and $1,365 has been accrued as of April 30, 2015 and January 31, 2015, respectively, and is included as an accrued expense on the accompanying balance sheets.

Related party convertible notes payable consists of an unsecured promissory note in the modified principal sum of $174,045 and $164,045 for cash loans made to the Company as of April 30, 2015 and January 31, 2015, respectively.  The convertible note bears interest at a rate of 5% per annum, matures in nine (9) months, or January 31, 2016, and is convertible into the Company’s common stock at a per share rate equal to the fair market value on the date of conversion. Interest in the amount of $4,941 and $2,941 has been accrued as of April 30, 2015 and January 31, 2015, respectively, and is included as an accrued expense on the accompanying balance sheets.

 As of April 30, 2015 and January 31, 2015, the Company has accrued $6,574 and $4,306, respectively, in interest on related party loans.