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RELATED PARTY TRANSACTIONS
3 Months Ended
Oct. 31, 2016
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 4 - RELATED PARTY TRANSACTIONS

 

Note Payable

 

On July 15, 2014, a corporation controlled by an officer and director committed $75,000 Promissory Note in the form of a line of credit.  Any unpaid balance was due December 31, 2015, and was extended to December 31, 2016, at an annual interest rate of 5% and may be prepaid without penalty. The Company concluded the note modification was not a significant change and is not treating it as an extinguishment.  During the three months ended October 31, 2016 and 2015, net repayments under the line of credit to the Company were made in the amount of $3,468 and $81, respectively. As of October 31, 2016 and July 31, 2016, the Company was obligated to the Company, for this interest bearing loan with a balance of $52,616 and $56,084, with accrued interest balance of $nil and $277, respectively. The Company plans to pay the loan back as cash flows become available.  The remaining balance available under the line of credit is $22,384 as of October 31, 2016.  For the three months ended October 31, 2016 and 2015, the Company paid $969 and $734 in interest on this note payable, respectively.

 

Reclassifications

 

During the three months ended October 31, 2015, revenues to related parties were recorded as $4,500. The amount during the three months ended October 31, 2015, netting to $5,000 ($4,500 revenues during the three months ended October 31, 2015 plus the $500 cash received during the quarter to settle prior quarter accounts receivable) has been reclassified as contributed capital based on the Company’s evaluation of ASC 605 regarding the nature of the transactions. We have reclassified amounts on the Statement of Operations and statement of Cash flows for the three months ended October 31, 2015.

 

Other

 

The controlling shareholders have pledged their support to fund continuing operations during an early stage; however there is no written commitment to this effect.  The Company is dependent upon the continued support.

 

The officers and directors of the Company may be involved in other business activities and may, in the future, become involved in other business opportunities that become available. They may face a conflict in selecting between the Company and other business interests. The Company has not formulated a policy for the resolution of such conflicts.

 

The Company does not own or lease property or lease office space. The office space used by the Company was arranged by the founder of the Company to use at no charge.

 

The Company does not have employment contracts with its key employees, the controlling shareholders, who are officers and directors of the Company.