Loan Payable [Text Block] |
During the three months ended September 30, 2017, the Company had the following loan agreements outstanding, summarized as follows: | (a) | On January 1, 2016, the Company entered into a short-term loan agreement with an original maturity date of July 1, 2016, for $110,000. A one -time interest charge of 5% or $5,500 was due as of July 1, 2016. The loan was entered into to settle marketing fees payable and had a conversion feature in the event of loan default. | | (b) | On October 24, 2016, the Company entered into a promissory note agreement and received a total of $12,000. The note is due November 9, 2016. In addition, the Company issued 75,000 common shares within 14 days of the start of the note. In the event of default (non-payment), the balance of the promissory note will increase by 140%. These shares were measured at the agreement date fair value with $10,500 recognized as interest expense and additional paid in capital. | On November 29, 2016, the maturity date of the promissory note was extended to January 30, 2017. As consideration for the extension, the Company agreed to issue 225,000 shares (issued). The shares were measured at the fair value on the agreement date with $27,000 recognized as additional paid in capital and loss on extinguishment of debt. During the three months ended September 30, 2017, the remaining balance of $16,800 was settled with 925,000 common shares measured at the issued date fair value of $27,750 with the difference of $10,950 recognized as a loss on extinguishment. | (c) | During July and August 2017, the Company entered into a short-term loan agreement as follows: | | (i) | On July 25, 2017, the Company borrowed a total of $10,000 together with monthly interest of $200 due April 27, 2018;
| | (ii) | On August 14, 2017, the Company borrowed a total of $100,000 together with monthly interest of $750 due May 14, 2018; and | | (iii) | On August 22, 2017, the Company borrowed a total of $162,400 together with monthly interest of $750 due May 23, 2018.
| During the three months ended September 30, 2017, the Company accrued interest expense of $4,052 ( 2016 - $nil ).
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