On June 14, 2010, the Company signed a
promissory note for $20,000 with an officer. The loan was due on June 14, 2011, bears 6% interest and is unsecured. The terms of
the notes were revised to adjust maturity to due on demand during the year ended July 31, 2011. Interest expense on this loan was
$1,200 for the years ended July 31, 2012 and 2012. During the year ended July 31, 2012, the shareholder forgave the balance of
the loan and all accrued interest. The forgiveness of debt of $22,554 was recorded as contributed capital.
In association with the change in control
during the year ended July 31, 2012, the selling shareholders paid certain legal and accounting expenses on behalf of the company.
A total of $58,437 was paid by the shareholder and has been recorded as contributed capital.