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Note 4 - Debt
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9 Months Ended |
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Feb. 28, 2015
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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 borrowed $50 from BK Consulting to fund its operations. The unsecured note bears interest at a rate of 8% annually and is due on demand.
During the year ended May 31, 2013, the Company borrower $161 from BK Consulting to fund its operations. The unsecured note bears interest at a rate of 8% annually and is due on demand.
During the year ended May 31, 2014, the Company borrowed $4,999 from BK Consulting to fund its operations. The unsecured note bears interest at a rate of 8% annually and is due on demand.
On November 11, 2014, BK Consulting forgave all outstanding loans, promissory notes and other indebtedness of the Company to BK Consulting, including, but not limited to, all principal, interest and other amounts owed pursuant to the above-referenced unsecured promissory notes.
As of February 28, 2015 and May 31, 2014, respectively, the Company had accrued interest related to these notes in the amount of $0 and $371.
Convertible Notes Payable - Related Party
During the year ended May 31, 2014, the Company issued an unsecured convertible note in the amount of $9,675 to BK Consulting and used the proceeds to fund its operations. The unsecured convertible note is non-interest bearing, due on demand and convertible into common stock at a rate $0.0032 per share (post reverse-split).
On July 16, 2014, the Company issued an unsecured convertible note in the amount of $11,582 to BK Consulting and used the proceeds to fund its operations. The unsecured convertible note is non-interest bearing, due on demand and convertible into common stock at a rate $0.0032 per share (post reverse-split).
On July 29, 2014, the Company issued an unsecured convertible note in the amount of $1,600 to BK Consulting and used the proceeds to fund its operations. The unsecured convertible note is non-interest bearing, due on demand and convertible into common stock at a rate of $0.0032 per share (post reverse-split).
On August 22, 2014, the Company issued an unsecured convertible note in the amount of $1,750 to BK Consulting and used the proceeds to fund its operations. The unsecured convertible note is non-interest bearing, due on demand and convertible into common stock at a rate of $0.0032 per share (post reverse-split).
On September 2, 2014, the Company issued an unsecured convertible note in the amount of $2,000 to BK Consulting and used the proceeds to fund its operations. The unsecured convertible note is non-interest bearing, due on demand and convertible into common stock at a rate of $0.0032 per share (post reverse-split).
On October 15, 2014, the Company issued an unsecured convertible note in the amount of $1,250 to BK Consulting and used the proceeds to fund its operations. The unsecured convertible note is non-interest bearing, due on demand and convertible into common stock at a rate of $0.0032 per share (post reverse-split).
On November 3, 2014, the Company issued an unsecured convertible note in the amount of $200 to BK Consulting and used the proceeds to fund its operations. The unsecured convertible note is non-interest bearing, due on demand and convertible into common stock at a rate of $0.0032 per share (post reverse-split).
On November 11, 2014, BK Consulting forgave all outstanding loans, promissory notes and other indebtedness of the Company to BK Consulting, including, but not limited to, all amounts owed pursuant to the above-referenced unsecured convertible notes.
As of February 28, 2015 and May 31, 2014, respectively, the balance of the convertible debt was $0 and $9,675. The Company recorded imputed interest in the amount of $616 and $115 during the nine months ended February 28, 2015 and 2014, respectively, at a rate of 8% on the outstanding convertible notes.
Discount on Convertible Notes - Related Party
The Company calculated any beneficial conversion feature in its convertible notes via the intrinsic value method at the time of issuance. The notes were convertible at a price of $0.032 per share (post reverse-split). As a result of the notes’ conversion price being greater than the market price of the Company’s common 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 sells additional stock or the market price of the common stock increases.
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