• Filing Date: 2019-01-11
  • Form Type: 10-Q
  • Description: Quarterly report
v3.10.0.1
Note Payable to Shareholder
3 Months Ended
Nov. 30, 2018
Debt Disclosure [Abstract]  
Note Payable to Shareholder

Note 5. Note Payable to Shareholder

 

On January 9, 2014, the Company issued a $70,000 note payable to a shareholder of the Company. The note payable bears interest at an annual rate of 7%, which then increased to 10% after it was in default. Principal and accrued interest on the note payable were due on January 9, 2016, with a default annual rate of 10% interest after that date. The outstanding balance of principal and accrued interest may be prepaid without penalty. During the three months ended November 30, 2018, the Company recorded an interest expense of $1,745 related to the note payable. As of November 30, 2018, the original principal balance of $70,000 on the note payable remained outstanding, with accrued interest of $30,051. The note payable was not repaid on January 9, 2016 and is thus in default as of the date of this filing.