RELATED PARTIES |
12 Months Ended |
|---|---|
Jul. 31, 2025 | |
| RELATED PARTIES | |
| RELATED PARTIES | NOTE 4 - RELATED PARTIES
The Company uses warehouse and office space belonging to one of its stockholders. The stockholder does not charge the Company rent or other fees for the use of these facilities. Management believes the estimated fair value of the use of these facilities is not material to the accompanying financial statements.
Notes payable - stockholders
Four stockholders of the Company loaned a total of $62,750 to the Company at various times during the years ended July 31, 2010 through 2012. The loans carry interest rates from 8.00% to 12.00% and are due on demand. The balances on the loans are $62,750 at July 31, 2025 and 2024. Effective July 31, 2013, the noteholders waived the accrual of further interest on these loans. Accrued interest of $15,139 as of July 31, 2025 and 2024 relates to interest accrued prior to the waiver and is included within accrued interest - stockholders on the balance sheets.
One of the Company’s stockholders and a company owned by the stockholder advanced a total of $124,817 to the Company at various times between November 2012 and December 2020. On December 31, 2020, $124,217 of the balance of the advances was converted to a note payable to the stockholder. The note carries interest at a rate of 7.25% and is payable on demand. Accrued interest at July 31, 2025 and 2024 is $41,277 and $32,271, respectively and is included within accrued interest - stockholders on the balance sheets.
As of July 31, 2025 and 2024, the Company owes a stockholder $9,760 and $6,150 for advances made for the Company by the stockholder. The advances carry no interest.
Advances – related party
Since 2017, the Company received advances from Jericho, the Company’s proposed merger partner, to fund operating expenses while awaiting required governmental and tribunal approvals to complete the merger transaction.
The advances are non-interest-bearing, have no stated repayment terms, and are expected to be repaid upon consummation of the merger. As of July 31, 2025 and 2024, total advances outstanding were approximately $360,179 and $310,360, respectively, which are included in Advances – Related Party on the balance sheets.
Jericho has paid substantially all of the Company’s operating costs during the merger approval process and has indicated it does not intend to charge or accrue interest on these amounts. The Company has determined that imputation of interest is not required under ASC 835-30, Interest – Imputation of Interest, as the advances represent related-party capital support pending merger completion.
The terms of the above transactions are not necessarily indicative of what third parties would agree to. |