Related Party |
12 Months Ended |
|---|---|
Aug. 31, 2026 | |
| Related Party Transactions [Abstract] | |
| Related Party | Note 6 – Related Party
Effective June 6, 2023, the Company entered into a loan agreement with Diana Vasylenko, the Company’s President, Chief Executive Officer, Treasurer, Secretary and Director. The agreement established a Loan Amount of $70,000. The parties amended the agreement on November 14, 2023, increasing the Loan Amount to $220,000, and on January 30, 2026, increasing it to $320,000. The loan has a stated interest rate of 0% and provides for no contractual interest or fees. The agreement states that the loan is to be repaid over five years. The agreement provides for repayment from Company revenues after the Company achieves “significant financial returns” and permits repayment upon the lender’s request.
F-13 As of August 31, 2026 and 2025, the amount due to a related party was $254,755 and $200,790, respectively. The loan is due on demand and is therefore classified as a current liability. As of August 31, 2026, $65,245 of the $320,000 facility remained available.
The Company imputes interest on the loan at a market rate and records it as interest expense with a corresponding credit to additional paid-in capital. For fiscal 2026, interest was imputed on the daily outstanding loan balance at the monthly short-term Applicable Federal Rate published by the Internal Revenue Service, which ranged from 3.56% to 4.10% per annum during the year. In prior years, interest was imputed at a fixed rate of 5.25% per annum. Because market interest rates were not stable during fiscal 2026, management concluded that a monthly rate better reflects a market rate for the loan; the change was accounted for prospectively from September 1, 2025 as a change in accounting estimate. Imputed interest expense of $8,680 and $9,898 for the years ended August 31, 2026 and 2025, respectively, was recorded as additional paid-in capital.
|