NOTE 4 – INVESTMENT IN FINANCIER

Equity Investment

On July 15, 2022, the Company entered into a purchase and sale agreement with Financier LB Group, LLC (“Financier”) where Financier sold the Company 12.5% of the equity interests of Financier. The purchase price is payable as follows: (a) $95,000 in the form of the common stock of the Company which shall be restricted for 12 months, and (b) $95,000 cash at closing in the form of an interest free loan to the seller with the first payment due 30 days following delivery of the Company’s Common Stock, payable in equal installments of $1,583 over sixty months.  As of July 31, 2022, the Company has not issued the common stock to Financier and has recorded a $95,000 common stock payable.   In connection with the purchase, for a period of three years, the Company has the option to purchase the remaining 87.5% outstanding equity of Financier, for $1,330,000.

As of July 31, 2022, the Company has accounted for its investment in Financier using the cost method as the Company does not have the ability to exert significant influence over Financier.

Loan Receivable

As part of the transaction above, the Company issued an interest free loan to Financier in the amount of $95,000.  The Company imputed interest at 15% and as such created a discount to the Notes Receivable in the amount of $28,445, which increased the total investment to $123,445 at July 31, 2022.