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Subsequent Events
9 Months Ended
Feb. 28, 2018
Subsequent Events [Abstract]  
Subsequent Events

NOTE 9 – SUBSEQUENT EVENTS

 

On March 2, 2018, the Company and Blue Spike entered into a Mutual Discharge Agreement (the “Termination Agreement”), pursuant to which the parties mutually agreed to terminate the Manufacturing and Distribution Agreement. The effective date of the Termination Agreement was March 2, 2018.

 

The parties chose to terminate the Manufacturing and Distribution Agreement due to the Company's lack of sufficient sales Broken 7.

 

Pursuant to the Termination Agreement, the Company agreed to pay Blue Spike an aggregate of $5,979, including Blue Spike's outstanding invoices aggregating $3,700, sales commissions from September to December 2017 and applicable taxes.

 

There were no material early termination penalties incurred by the Company in connection with the termination of the Manufacturing and Distribution Agreement.

 

On March 23, 2018, the Company issued a convertible promissory note for proceeds of $20,000. The note matures on September 23, 2018, and accrues interest at 8% per annum. The note is convertible in common stock at 50% discount to the lowest average 20-day trading price. The note has not yet been paid, the default interest rate is 15% per annum and is currently in default.

 

On March 31, 2018, the Company issued a promissory note for proceeds of $2,500. The note matures on September 23, 2018 and accrues interest at 1.5% per quarter. The note has not yet been paid, the default interest rate is 2% per month and is currently in default.

 

On March 31, 2018, the Company issued a promissory note for proceeds of $6,500. The note matures on September 23, 2018 and accrues interest at 1.5% per quarter. The note has not yet been paid, the default interest rate is 2% per month and is currently in default.

 

On March 31, 2018, the Company issued a promissory note for proceeds of $7,338. The note matures on September 23, 2018 and accrues interest at 1.5% per quarter. The note has not yet been paid, the default interest rate is 2% per month and is currently in default.