Quarterly report pursuant to Section 13 or 15(d)

Note 10 - Loan Payable

v3.10.0.1
Note 10 - Loan Payable
3 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Loan Payable [Text Block]
NOTE
10
LOAN PAYABLE
 
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
).