COMMITMENTS AND CONTINGENCIES |
3 Months Ended |
|---|---|
Apr. 30, 2016 | |
| COMMITMENTS AND CONTINGENCIES | |
| COMMITMENTS AND CONTINGENCIES | 7. COMMITMENTS AND CONTINGENCIES
On July 8, 2014, the Company entered into an agreement to issue 100,000 shares of its common stock as a deposit to acquire software and against an option to acquire 100% of the issued share capital of AZUR Universal Inc., subject to certain terms and conditions. As at the date of this report certain due diligence remains to be completed. The common shares due were issued in March of 2016 as the directors intend to continue exploring the merits and timing of this software acquisition. Additional common shares would be issued to complete the full purchase transaction. The deposit is non-refundable and forfeited if the acquisition does not complete.
The Company is required to file its annual and quarterly financial reports with SEDAR in Canada. Due to delays in filing its financial statements and other possible forms, the Company believes it may be subject to certain potentially significant penalties to be levied by the Alberta Securities Commission (ASC). These fines have now been stated to be CDN$10,120 or approximately US$7,500 as advised and invoiced by the ASC, and have been accrued into the financial statements as of April 30, 2016. The Company is considering engaging its legal counsel to assist in reducing or eliminating these penalties within the next quarter. Further correspondence has been delivered to the ASC after filing the 10-K for January 31, 2016.
|