|
Note 4 - Debt
|
6 Months Ended |
|---|---|
|
Nov. 30, 2013
|
|
| Debt Disclosure [Abstract] | |
| Debt Disclosure [Text Block] |
Note 4 – Debt
Notes Payable
During the year ended May 31, 2012 the Company received a loan in the amount of $50, from BK Consulting and Associates, P.C. The unsecured note bears interest at 8% and is due on demand.
During the year ended May 31, 2013 the Company received loans in the amount of $161, from BK Consulting and Associates, P.C. The unsecured note bears interest at 8% and is due on demand.
On June 3, 2013, the Company received a loan in the amount of $15, from BK Consulting and Associates, P.C. The unsecured note bears interest at 8% and is due on demand.
On July 1, 2013, the Company received a loan in the amount of $15, from BK Consulting and Associates, P.C. The unsecured note bears interest at 8% and is due on demand.
On July 11, 2013, the Company received a loan in the amount of $3,350, from BK Consulting and Associates, P.C. The unsecured note bears interest at 8% and is due on demand.
On July 31, 2013, the Company received a loan in the amount of $886, from BK Consulting and Associates, P.C. The unsecured note bears interest at 8% and is due on demand.
On August 1, 2013, the Company received a loan in the amount of $14, from BK Consulting and Associates, P.C. The unsecured note bears interest at 8% and is due on demand.
On August 2, 2013, the Company received a loan in the amount of $1, from BK Consulting and Associates, P.C. The unsecured note bears interest at 8% and is due on demand.
On August 31, 2013, the Company received a loan in the amount of $377, from BK Consulting and Associates, P.C. The unsecured note bears interest at 8% and is due on demand.
On September 3, 2013, the Company received a loan in the amount of $15, from BK Consulting and Associates, P.C. The unsecured note bears interest at 8% and is due on demand.
As of November 30, 2013 and May 31, 2013 the Company had accrued interest related to these notes in the amount of $163 and $11.
Convertible Notes Payable
On October 1, 2013 the Company received an unsecured convertible loan of $15, non-interest bearing, due on demand and convertible into Common Stock at a rate $0.002 per share, from BK Consulting, to fund operations.
On October 14, 2013 the Company received an unsecured convertible loan of $1,250, non-interest bearing, due on demand and convertible into Common Stock at a rate $0.002 per share, from BK Consulting, to fund operations.
On October 31, 2013 the Company received an unsecured convertible loan of $1,950 non-interest bearing, due on demand and convertible into Common Stock at a rate $0.002 per share, from BK Consulting, to fund operations.
On November 1, 2013 the Company received an unsecured convertible loan of $25, non-interest bearing, due on demand and convertible into Common Stock at a rate $0.002 per share, from BK Consulting, to fund operations.
As of November 30, 2013 and May 31, 2013 the balance of the convertible debt was $3,240 and $0. The Company recorded imputed interest in the amount of $26 and $0 during the six months ended November 30, 2013 and 2012 at a rate of 8% on the outstanding convertible notes.
Discount on Convertible Notes
The Company calculates any beneficial conversion feature in its convertible notes via the intrinsic value method at the time of issuance. The notes are convertible at a price of $0.002 per share. As a result of the notes conversion price being greater than the market price of the stock, a discount to the notes was not recorded. The Company will value any future convertible debt issuances to determine if any discounts result from beneficial conversion features, but this is unlikely until the Company makes another sale of stock or the market price increases.
|