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5. Notes Payable
9 Months Ended
Jan. 31, 2020
Notes  
5. Notes Payable

NOTE – 5: NOTES PAYABLE

 

On July 6, 2018 the Company signed an investment agreement with a third party. Under the terms of the agreement the Company received $250,000 through the Company attorney’s trust account. On July 12, 2018 the Company received the $250,000 less wire and legal payment of $10,045. In addition the note holder will receive a royalty of 5% up to $250,000 and then a royalty of 3.5% for two years thereafter. The note holder will receive 150,000 shares of the Company’s common stock plus 100,000 warrants to purchase common shares within three years at $2.50 per share.

 

On January 26, 2019 the Company approved a loan from Brian McLain of $275,000. The note is convertible into common stock of the Company and is non-dilutive for 2 years from date of the note. In addition the Company granted the lender 100,000 warrants convertible into common shares at $1.00 per share. As of January 31, 2020,  $25,000 of the loan was funded by the lender.

 

As of January 31, 2020 and April 30, 2019 the outstanding balances of notes payable  was $429,226, respectively.