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RELATED PARTY TRANSACTIONS
 9 Months Ended
Apr. 30, 2013
Related Party Transactions  
Note 5 - RELATED PARTY TRANSACTIONS

During the nine months ended April 30, 2013, we received $23,473 from officers and directors in cash advances. These advances are not evidenced by a promissory note. We therefore impute interest expense to equity at the rate of 6% per annum. For the nine months ended April 30, 2013, we imputed $5,917 in interest. From inception (July 21, 2009) to April 30, 2013, we received $61,261 in advances from related parties consisting of $55,847 of cash advances and $5,414 in expenses paid on behalf of the company. Also, from inception to April 30, 2013, we imputed $11,433 in interest on these advances. During the nine months ended April 30, 2013, these advances and expenses paid on behalf of the company were repaid in full.

 

During the three months ended October 31, 2012, we issued 16,250 shares to an accredited investor who entered into a subscription agreement with us back in May, 2012 for $6,500. The issuance of those 16,250 shares extinguished that stock payable. On September 1, 2012, this investor became a director of the Company.

 

Also, on September 1, 2012, we issued an additional 180,000 shares to this director for one year of services through August 31, 2013. We valued these shares at their grant date fair, recording an increase in Additional Paid Capital of $70,200 and a charge to general and administrative expense in the same amount.

 

On January 5, 2013, we granted 240,000 options to an incoming Director. The options have an exercise period of four years with an exercise price of $0.10. We valued the options using the Black Scholes Option Pricing Model with the following inputs: stock price on measurement date: $0.18; Exercise price: $0.10; Option term: 4 years; Computed volatility: 448%. The resulting Black Scholes value was $43,151 which is included in general and administrative expenses for the three months ended April 30, 2013.