v3.25.2
NOTES PAYABLE
 9 Months Ended
Apr. 30, 2025
Debt Disclosure [Abstract]  
NOTES PAYABLE

NOTE 4 – NOTES PAYABLE

 

The following represents a summary of the Company’s notes payable at April 30, 2025 and July 31, 2024:

  

          Default              

Issue Date

Date

 

Maturity

Date

 

Interest

Rate

   Interest Rate   Collateral  April 30, 2025   July 31, 2024   
                         
August 2023  August 2024   10%   20%  Unsecured  $-   $150,000    
November 2023  November 2024   10%   20%  Unsecured   -    50,000  1 
December 2023  December 2024   10%   20%  Unsecured   -    25,000  2 
April 2024  April 2025   10%   20%  Unsecured   -    25,000  3 
                    -    250,000    
                Less: unamortized debt discount   -    (27,137 )  
                Notes payable - net  $-   $222,863    

 

1   - In connection with the issuance of this $50,000 note, the Company also issued 100,000 shares of common stock. The issuance of the common stock was considered a debt discount. The fair value of the common stock was $21,890, based upon the quoted trading price ($0.2189/share) and is being amortized over the life of the note.

 

2   - In connection with the issuance of this $25,000 note, the Company also issued 125,000 shares of common stock. The issuance of the common stock was considered a debt discount. The fair value of the common stock was $25,000, based upon the quoted trading price ($0.20/share) and is being amortized over the life of the note.

 

3   - In connection with the issuance of this $25,000 note, the Company also issued 100,000 shares of common stock. The issuance of the common stock was considered a debt discount. The fair value of the common stock was $20,000, based upon the quoted trading price ($0.20/share) and is being amortized over the life of the note.

 

Pursuant to the agreement associated with the transition to current management on April 9, 2025, the Company repaid $212,500 of the principal in settlement of the notes above. In connection with the settlement agreements, the holders agreed to forgive all interest accrued on the notes totaling $49,995. Also in connection with the settlement of the notes, $37,500 in principal was converted into 500,000 shares common stock of the Company. As the notes were not previously convertible, the Company evaluated the conversion for gain/loss and determined that there was a loss due to the conversion based on the quoted closing price on the date of settlement in the amount of $87,500 which is recorded as other expense on the income statement

 

Interest expense on the notes for the three- and nine-months ended April 30, 2025, was recognized in the amount of $10,171 and $29,597, respectively.

 

See Note 6.