XML 23 R12.htm IDEA: XBRL DOCUMENT v3.8.0.1
RELATED PARTY TRANSACTIONS
12 Months Ended
Jul. 31, 2017
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 6 - RELATED PARTY TRANSACTIONS

 

Accounts Payable

 

 During the years ended July 31, 2017 and 2016, the Company repaid $0 and $17,750 to an officer and director of the company for labor cost in the performance of servicing contracts with a related party company and additional corporate administrative work, respectively. As at July 31, 2017 and 2016, the Company was obligated to this individual for amounts payable of $0 and $17,750, respectively.

 

Note Payable

 

On July 15, 2014, a corporation controlled by an officer and director committed $75,000 Promissory Note in the form of an unsecured line of credit. Any unpaid balance was due December 31, 2015, and was extended to December 31, 2017, 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 years ended July 31, 2017 and 2016, net repayments under the line of credit to the Company were made in the amount of $17,483 and $2,399, respectively. As of July 31, 2016 the Company was obligated, for this interest bearing loan with a balance of $56,084 and accrued interest of $277. As of July 31, 2017, the Company was obligated, for this interest-bearing loan with a balance of $38,601 and accrued interest of $642. The Company plans to pay the loan and interest back as cash flows become available. The remaining balance available under the line of credit is $35,757 as of July 31, 2017. For the years ended July 31, 2017 and 2016, the Company paid $2,567 and $2,579, respectively, in interest on this note payable.

 

Contributed Capital

 

During the year ended July 31, 2016, revenues to related parties were recorded as $18,000, and accounts receivable with related parties of $5,000, in relation to the revenues earned. The amount during the year ended July 31, 2016, netting to $26,000 ($18,000 plus the $8,000 cash received in the current year to settle prior year accounts receivable) and have been reclassified as contributed capital based on the Company’s evaluation of ASC 605 regarding the nature of the transactions.

 

Other

 

On May 11, 2017, Ernest Diaz resigned as Executive Vice-President and as a director of the Company. Pursuant to his resignation, Mr. Diaz sold all of his 6,440,000 common shares of the Company to Curtis Summers and Douglas Baker, who each purchased 3,220,000 common shares.  After the purchase, Mr. Summers and Mr. Baker, who are our only officers and directors of the Company, own 9,660,000 and 4,340,000 common shares or 53.7% and 24.12% of the Company, respectively.

 

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.