CONVERTIBLE NOTES RELATED PARTY

12 Months Ended

Jul. 31, 2021

CONVERTIBLE NOTES RELATED PARTY

NOTE 6 - CONVERTIBLE NOTES - RELATED PARTY

NOTE 6 - CONVERTIBLE NOTES - RELATED PARTY

At July 31, 2021 and 2020, convertible note consisted of the following:

	July 31,		July 31,
	2021		2020
Convertible promissory notes issued	$	500,000	$	500,000
Less discount		-		-
Total convertible note		500,000		500,000
Accrued interest		128,659		68,659
Liability component	$	628,659	$	568,659

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. In August 2019, the lender became the Company’s sole officer and director. As a result of the investor becoming the Company’s sole officer and director, these notes were reclassified as convertible notes - related party.

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 delivered to the Company. The Company is in default of its obligation to grant the lender a security interest in the inventory and the Company did not obtain physical possession of the inventory. The lender was appointed as a director, chief executive officer, chief financial officer, president and secretary of the Company on August 14, 2019. The notes are currently in default.

Interest of 5% is payable annually until the settlement date. During the years ended July 31, 2021 and 2020, the Company recorded interest expense of $60,000 and $35,391 and amortization of debt discount of $0 and $162,179, respectively, respectively. No interest has been paid during the years ended July 31, 2021 and 2020.