CONVERTIBLE NOTES - RELATED PARTY

3 Months Ended

Oct. 31, 2019

Debt Disclosure [Abstract]

CONVERTIBLE NOTES - RELATED PARTY

NOTE 6 – CONVERTIBLE NOTES – RELATED PARTY

At October 31, 2019 and July 31, 2019, convertible note consisted of the following:

	October 31,			July 31,
	2019			2019
Convertible promissory notes issued	$	500,000		$	500,000
Less discount		(97,867	)		(162,179	)
Total convertible note		402,133			337,821
Accrued interest		39,569			33,268
Liability component	$	441,702		$	371,089

Pursuant to a note purchase agreement dated March 20, 2018 between the Company and a then 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 was not been delivered to the Company. The Company is in default of its obligation to grant the lender a security interest in the inventory. The lender was appointed as a director, chief executive officer, chief financial officer, president and secretary of the Company subsequently on August 14, 2019.

Interest of 5% is payable annually until the settlement date. No interest was paid during the three months ended October 31, 2019.