CONVERTIBLE NOTES - RELATED PARTY

9 Months Ended

Apr. 30, 2022

CONVERTIBLE NOTES - RELATED PARTY

CONVERTIBLE NOTES - RELATED PARTY

NOTE 5 - CONVERTIBLE NOTES - RELATED PARTY

At April 30, 2022 and July 31, 2021, the convertible note consisted of the following:

	January 31		July 31,
	2022		2021
Convertible promissory notes issued	$	-	$	500,000
Less discount		-		-
Total convertible note		-		500,000
Accrued interest		-		128,659
Liability component	$	-	$	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 were 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 nine months ended April 30, 2022, and 2021, the Company recorded interest expense of $15,123 and $44,876, respectively. No interest has been paid during the nine months ended April 30, 2022 and 2021.

During the nine months ended April 30, 2022, the Company issued 32,189,100 shares of common stock to the CEO for the settlement of the convertible note, and interest, in the aggregate amount of $643,782.