CONVERTIBLE NOTES RELATED PARTY

3 Months Ended

Oct. 31, 2021

CONVERTIBLE NOTES RELATED PARTY

NOTE 5 - CONVERTIBLE NOTES - RELATED PARTY

NOTE 5 - CONVERTIBLE NOTES - RELATED PARTY

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

	October 31,		July 31,
	2021		2021
Convertible promissory notes issued	$	500,000	$	500,000
Less discount		-		-
Total convertible note		500,000		500,000
Accrued interest		143,782		128,659
Liability component	$	643,782	$	628,659

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.

Interest of 5% is payable annually until the settlement date. The notes default rate of 12% is payable from maturity date of the notes. During the three months ended October 31, 2021, and 2020, the Company recorded interest expense of $15,123 and $15,123, respectively. No interest has been paid during the three months ended October 31, 2021 and 2020.