RELATED PARTY TRANSACTIONS |
6 Months Ended |
|---|---|
Jan. 31, 2026 | |
| RELATED PARTY TRANSACTIONS | |
| RELATED PARTY TRANSACTIONS | NOTE 8 - RELATED PARTY TRANSACTIONS
RAC Merger LLC is the Company’s majority shareholder and owns approximately 98.5% of the Company’s outstanding common stock. RAC Merger LLC also owns 100% of RAC Real Estate Acquisition Corp., which previously operated as a subsidiary of the Company prior to its sale on July 8, 2025. Accordingly, transactions between the Company, RAC Merger LLC, and RAC Gadsden, LLC are considered related-party transactions.
During the six months ended January 31, 2025, the Company’s related parties advanced $835,000. The advances are unsecured, payable during the period of five to ten months with interest of a range from 12% to 24% annual. During the six months ended January 31,2025, the Company settled unpaid due to related party. During the six months ended January 31, 2025, the Company recognized and paid interest expenses of $0.
During the six months ended January 31, 2025, the Company’s Board of Directors approved the settlement of $1,716,000 due to one related party (including $835,000 advanced described above) in exchange for an issuance of 4,290,000 shares of common stock.
During the six months ended January 31, 2026 and 2025, the Company’s related parties advanced to the Company an amount of $33,130 and $0 by paying for operating expenses on behalf of the Company, respectively. The advances are unsecured, non-interest-bearing and due on demand and have not been formalized by a promissory note.
During the six months ended January 31, 2026, and 2025, the Company’s related parties advanced $10,000 and $0 to the Company, and the Company repaid $30,240 and $225,000, respectively. The advances are unsecured, due on demand and non-interest bearing.
On October 31, 2025, the Company entered into an Asset Purchase Agreement with, RAC Gadsden, LLC (the “LLC”). The LLC is wholly owned by RAC Real Estate Acquisition, Corp. (“RAC”), which is wholly owned by RAC Merger LLC, which owns 98.5% of the current issued and outstanding shares of the Company. As a result of the agreement, the Company acquired 4 acres of land in Glencoe, Alabama in exchange for a secured promissory note with the LLC in the amount of $350,000. The promissory note has a 3-year term and carries an interest rate of 9.5% per annum. The principal and interest are due at the conclusion of the 3-year term on October 30, 2028.
As of January 31, 2026, and July 31, 2025, the Company had due to related parties of $12,890 and $0, respectively. |