CONVERTIBLE NOTES

9 Months Ended

Apr. 30, 2019

Debt Disclosure [Abstract]

CONVERTIBLE NOTES

NOTE 6 – CONVERTIBLE NOTES

At April 30, 2019 and July 31, 2018, convertible note consisted of the following:

	April 30,			July 31,
	2019			2018
	(Unaudited)
Convertible promissory notes issued	$	500,000		$	500,000
Less discount		(226,491	)		(417,330	)
Liability component as at date of issue		273,509			82,670
Accrued interest		26,967			8,268
Liability component	$	300,476		$	90,938

Pursuant to a note purchase agreement dated March 20, 2018 between the Company and a non-affiliated lender, the lender made loans to the Company in the total amount of $500,000, for which the Company issued two-year 5% convertible notes. The notes are convertible into common stock of the Company at $0.02 per share. The Company agreed to grant the lender a security interest in equipment which was purchased from the proceeds of the notes. The equipment has not been delivered to the Company.

Interest of 5% is payable annually until the settlement date. No interest was paid during the nine months ended April 30, 2019.