GAIN FROM SETTLEMENT OF ACCOUNTS PAYABLE

10 Months Ended

Dec. 31, 2020

GAIN FROM SETTLEMENT OF ACCOUNTS PAYABLE

NOTE 7 - GAIN FROM SETTLEMENT OF ACCOUNTS PAYABLE

In connection with the closing of the Stock Purchase Agreement (see Note 3 above), the Seller agreed to pay approximately $37,000 to settle certain liabilities of the Company for transfer agent, edgar agent, and other services (approximately $18,000) and approximately $19,000 to settle a liability for services of our former Treasurer and Secretary (Chief Financial Officer) over an extended period of time aggregating approximately $186,000. The $167,000 excess of the $204,000 total debt satisfied over the $37,000 total cash paid has been recognized as a gain from settlement of accounts payable in the three months ended August 31, 2020.