CONVERTIBLE NOTE PAYABLE |
6 Months Ended |
|---|---|
Jul. 31, 2026 | |
| CONVERTIBLE NOTE PAYABLE | |
| CONVERTIBLE NOTE PAYABLE | NOTE 6 – CONVERTIBLE NOTE PAYABLE
During October 2017, the Company issued a convertible promissory note with an original principal balance of $1,407,781.
The note bears interest at a rate of 1% per annum and was payable upon maturity or conversion at the option of the holder. The note contained a conversion feature that allowed the holder to convert the outstanding balance, including accrued interest, into shares of the Company’s common stock at a discount to the market price of the Company’s common stock at the date of conversion. The Company evaluated the conversion feature in accordance with ASC 815, Derivatives and Hedging, and determined that the feature did not require separate accounting as a derivative.
In accordance with ASC 470, Debt, the Company recognized a debt discount associated with the conversion feature of $248,432, which was amortized over the term of the note.
During the year ended January 31, 2026, the Company extinguished its outstanding convertible promissory note through the issuance of shares of common stock.
Interest expense related to the Company's convertible promissory note was $0 and $3,598 for the three months ended July 31, 2026, and 2025, respectively. Interest expense related to the Company's convertible promissory note was $0 and $7,078 for the six months ended July 31, 2026, and 2025, respectively. |