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Note 4 - Debt
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3 Months Ended |
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Aug. 31, 2014
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| Debt Disclosure [Abstract] | |
| Debt Disclosure [Text Block] |
Note 4 – Debt
Notes Payable - Related Party
During the year ended May 31, 2012 the Company received a loan in the amount of $50, from BK Consulting and Associates, P.C. to fund operations. 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. to fund operations. The unsecured note bears interest at 8% and is due on demand.
During the year ended May 31, 2014 the Company received loans in the amount of $4,999, from BK Consulting and Associates, P.C. to fund operations. The unsecured note bears interest at 8% and is due on demand.
As of August 31, 2014 and May 31, 2014 the Company had accrued interest related to these notes in the amount of $476 and $371.
Convertible Notes Payable - Related Party
During the year ended May 31, 2014 the Company received unsecured convertible notes payable in the amount of $9,675, from BK Consulting and Associates, P.C. to fund operations. The unsecured convertible note is non-interest bearing, due on demand and convertible into Common Stock at a rate $0.002 per share.
On July 16, 2014 the Company received an unsecured convertible note payable in the amount of $11,582, 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 July 29, 2014 the Company received an unsecured convertible note payable in the amount of $1,600, 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 August 22, 2014 the Company received an unsecured convertible note payable in the amount of $1,750, 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 August 31, 2014 and May 31, 2014 the balance of the convertible debt was $24,607 and $9,675. The Company recorded imputed interest in the amount of $456 and $0 during the three months ended August 31, 2014 and 2013 at a rate of 8% on the outstanding convertible notes.
Discount on Convertible Notes - Related Party
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.
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