So-called "unrelated parties" and "third parties."
Note 4 Notes Payable
The following details the significant terms and balances of convertible notes payable, net of debt discounts:
January 31, 2014 July 31, 2013
Convertible promissory note dated May 9, 2013, bearing interest at a rate of 8%
per annum, maturing February 13, 2014 convertible at a 55% discount to the
average of the six lowest ten-day trading prices at date of conversion. The note
was fully converted at January 31, 2014. - 27,140
Judgment payable dated July 2010, bearing interest at a rate of 8% per annum
12,500 12,500
Convertible promissory note dated March 15, 2013, bearing interest at a rate of
8% per annum, maturing February 13, 2014 convertible at a 55% discount to
the average of the six lowest ten-day trading prices at date of conversion. The
note has been fully converted at January 31, 2014.
- 63,896
Convertible promissory note dated September 3, 2013, bearing interest at a rate
of 8% per annum, maturing June 5, 2014 convertible at a 55% discount to the
average of the six lowest ten-day trading prices atdate of conversion.
37,500 -Convertible promissory note dated September 13, 2013, bearing interest at a
rate of 8% per annum, maturing March 31, 2014 convertible at a 50% discount
to the average of the two lowest volume weighted average prices The note was
fully converted at January 31, 2014.
- -Convertible promissory note dated September 13, 2013, bearing interest at a
rate of 8% per annum, maturing March 31, 2014 convertible at a 50% discount
to the average of the two lowest volume weighted average prices. The note was
fully converted at January 31, 2014.
- -Convertible promissory note dated November 7, 2013,bearing interest at a rate
of 8% per annum, maturing November 6, 2014 convertible at a fixed price of
$0.00015 per share. $23,500 of the note was converted at January 31, 2014.
17,637 -F-9
Alternative Energy Partners, Inc.
(A Development Stage Company)
Notes to Condensed Consolidated Financial Statements
January 31, 2014
(Unaudited)
Note 4 Notes Payable (continued)
January 31, 2014 July 31, 2013
Convertible promissory note dated November 1, 2013,bearing interest at a rate
of 8% per annum, maturing December 31, 2014 convertible at a 50% discount
to the average lowest price for five trading days prior to conversion. The
carrying amount of the debt discount was $94,085 atJanuary 31, 2014.
25,915 -Total short term notes payable
93,552 103,536
Long-term notes payable
Note payable bearing interest at a rate of 5% per annum and maturing
December 31, 2014. The carrying amount of the debt discount was $4,964 and
$7,699, respectively.
6,791 4,056
Note payable bearing interest at a rate of 5% per annum and maturing
December 31, 2014 convertible at a 50% discount to the average closing prices
for the 5 trading days prior to the date of conversion. The carrying amount of
the debt discount was $36,011 and $55,850, respectively. 34,489 14,650
Convertible promissory note dated May 1, 2013, bearing interest at a rate of 6%
per annum, maturing May 1, 2014 convertible at a 50% discount to the average
closing prices for the 5 trading days prior to the date of conversion The
carrying amount of the debt discount was $27,916 and $33,945, respectively.
This note was fully converted at January 31, 2014. - 8,905
Convertible promissory note dated May 5, 2013, bearing interest at a rate of 8%
per annum, maturing May 5, 2014 convertible at a fixed price of $0.00015. This
note has been fully converted at January 31, 2014. - 41,137
Convertible promissory note dated May 5, 2013, bearing interest at a rate of 8%
per annum, maturing May 5, 2014 convertible at a fixed price of $0.00015. This
note was fully converted at January 31, 2014. - 41,137
Convertible promissory note dated May 5, 2013, bearing interest at a rate of 8%
per annum, maturing May 5, 2014 convertible at a fixed price of $0.00015. This
note was transferred to another lender at January 31, 2014 - 41,137
Convertible promissory note dated May 5, 2013, bearing interest at a rate of 8%
per annum, maturing May 5, 2014 convertible at a fixed price of $0.00015. This
note has been fully converted at January 31, 2014. - 41,137
Convertible promissory note dated May 1, 2013, bearing interest at a rate of 6%
per annum, maturing May 1, 2014 convertible at a 55% discount to the average
of the six lowest ten-day trading prices at date of conversion. This note was
transferred to another lender at January 31, 2014
- 40,000
3-year note to acquire Pharmajanes 50,000 50,000
3-year note to acquire Smartpay 30,000 30,000
Total long-term notes payable $ 121,280 $ 312,159
Total notes payable $ 214,832 $ 415,695
Subsequent to the quarter ending January 31, 2014, the Company converted notes payable principal of $115,359 into 269,060,401 common shares. As of March 17 2014, there were 3,553,421,246 shares of our common stock outstanding, held by 142 shareholders of record.
On February 18, 2014, the Company borrowed $67,000 each from two unrelated parties and issued two promissory notes dated that date in the principal amount of $67,000 each, due February 18, 2015, with interest at8 percent. The
Company received net proceeds of $65,000 from each lender after payment of related fees and charges. Each note is convertible into common shares at the election of the holder at the lesser of $0.002 per share or at a rate equal to 54 percent of the two lowest volume weighted average for the stock for the ten trading days prior to the conversion.
In February, 2014, the Company borrowed a total of $47,500 from an unrelated third party, receiving net proceeds of $45,000 after the payment of legal fees of the lender. The Company issued its convertible promissory note in the principal amount of $47,500 due November 14, 2014 at 8 percent interest due at maturity. The note is convertible after 180 days from the date of issue at the election of the holder into common stock at a conversion rate equal to 45 percent of the lowest 3 day trading price for the common stock for the 10 trading days prior to the conversion.
In March, 2014, the Company announced the agreement in principal to merge with SK3 Group, Inc. (SKTO Pink). A Merger Agreement is being prepared and is expected to be signed in early April, following which a registration statement will be filed for the common shares to beissued in the merger. In accordance with ASC 855, management evaluated all activity of the Company through the date of filing, (the issue date of the financial statements) and concluded that no other subsequent events have occurred that would require recognition or disclosure in the financial statements.
Note 4 Notes Payable
The following details the significant terms and balances of convertible notes payable, net of debt discounts:
January 31, 2014 July 31, 2013
Convertible promissory note dated May 9, 2013, bearing interest at a rate of 8%
per annum, maturing February 13, 2014 convertible at a 55% discount to the
average of the six lowest ten-day trading prices at date of conversion. The note
was fully converted at January 31, 2014. - 27,140
Judgment payable dated July 2010, bearing interest at a rate of 8% per annum
12,500 12,500
Convertible promissory note dated March 15, 2013, bearing interest at a rate of
8% per annum, maturing February 13, 2014 convertible at a 55% discount to
the average of the six lowest ten-day trading prices at date of conversion. The
note has been fully converted at January 31, 2014.
- 63,896
Convertible promissory note dated September 3, 2013, bearing interest at a rate
of 8% per annum, maturing June 5, 2014 convertible at a 55% discount to the
average of the six lowest ten-day trading prices atdate of conversion.
37,500 -Convertible promissory note dated September 13, 2013, bearing interest at a
rate of 8% per annum, maturing March 31, 2014 convertible at a 50% discount
to the average of the two lowest volume weighted average prices The note was
fully converted at January 31, 2014.
- -Convertible promissory note dated September 13, 2013, bearing interest at a
rate of 8% per annum, maturing March 31, 2014 convertible at a 50% discount
to the average of the two lowest volume weighted average prices. The note was
fully converted at January 31, 2014.
- -Convertible promissory note dated November 7, 2013,bearing interest at a rate
of 8% per annum, maturing November 6, 2014 convertible at a fixed price of
$0.00015 per share. $23,500 of the note was converted at January 31, 2014.
17,637 -F-9
Alternative Energy Partners, Inc.
(A Development Stage Company)
Notes to Condensed Consolidated Financial Statements
January 31, 2014
(Unaudited)
Note 4 Notes Payable (continued)
January 31, 2014 July 31, 2013
Convertible promissory note dated November 1, 2013,bearing interest at a rate
of 8% per annum, maturing December 31, 2014 convertible at a 50% discount
to the average lowest price for five trading days prior to conversion. The
carrying amount of the debt discount was $94,085 atJanuary 31, 2014.
25,915 -Total short term notes payable
93,552 103,536
Long-term notes payable
Note payable bearing interest at a rate of 5% per annum and maturing
December 31, 2014. The carrying amount of the debt discount was $4,964 and
$7,699, respectively.
6,791 4,056
Note payable bearing interest at a rate of 5% per annum and maturing
December 31, 2014 convertible at a 50% discount to the average closing prices
for the 5 trading days prior to the date of conversion. The carrying amount of
the debt discount was $36,011 and $55,850, respectively. 34,489 14,650
Convertible promissory note dated May 1, 2013, bearing interest at a rate of 6%
per annum, maturing May 1, 2014 convertible at a 50% discount to the average
closing prices for the 5 trading days prior to the date of conversion The
carrying amount of the debt discount was $27,916 and $33,945, respectively.
This note was fully converted at January 31, 2014. - 8,905
Convertible promissory note dated May 5, 2013, bearing interest at a rate of 8%
per annum, maturing May 5, 2014 convertible at a fixed price of $0.00015. This
note has been fully converted at January 31, 2014. - 41,137
Convertible promissory note dated May 5, 2013, bearing interest at a rate of 8%
per annum, maturing May 5, 2014 convertible at a fixed price of $0.00015. This
note was fully converted at January 31, 2014. - 41,137
Convertible promissory note dated May 5, 2013, bearing interest at a rate of 8%
per annum, maturing May 5, 2014 convertible at a fixed price of $0.00015. This
note was transferred to another lender at January 31, 2014 - 41,137
Convertible promissory note dated May 5, 2013, bearing interest at a rate of 8%
per annum, maturing May 5, 2014 convertible at a fixed price of $0.00015. This
note has been fully converted at January 31, 2014. - 41,137
Convertible promissory note dated May 1, 2013, bearing interest at a rate of 6%
per annum, maturing May 1, 2014 convertible at a 55% discount to the average
of the six lowest ten-day trading prices at date of conversion. This note was
transferred to another lender at January 31, 2014
- 40,000
3-year note to acquire Pharmajanes 50,000 50,000
3-year note to acquire Smartpay 30,000 30,000
Total long-term notes payable $ 121,280 $ 312,159
Total notes payable $ 214,832 $ 415,695
Subsequent to the quarter ending January 31, 2014, the Company converted notes payable principal of $115,359 into 269,060,401 common shares. As of March 17 2014, there were 3,553,421,246 shares of our common stock outstanding, held by 142 shareholders of record.
On February 18, 2014, the Company borrowed $67,000 each from two unrelated parties and issued two promissory notes dated that date in the principal amount of $67,000 each, due February 18, 2015, with interest at8 percent. The
Company received net proceeds of $65,000 from each lender after payment of related fees and charges. Each note is convertible into common shares at the election of the holder at the lesser of $0.002 per share or at a rate equal to 54 percent of the two lowest volume weighted average for the stock for the ten trading days prior to the conversion.
In February, 2014, the Company borrowed a total of $47,500 from an unrelated third party, receiving net proceeds of $45,000 after the payment of legal fees of the lender. The Company issued its convertible promissory note in the principal amount of $47,500 due November 14, 2014 at 8 percent interest due at maturity. The note is convertible after 180 days from the date of issue at the election of the holder into common stock at a conversion rate equal to 45 percent of the lowest 3 day trading price for the common stock for the 10 trading days prior to the conversion.
In March, 2014, the Company announced the agreement in principal to merge with SK3 Group, Inc. (SKTO Pink). A Merger Agreement is being prepared and is expected to be signed in early April, following which a registration statement will be filed for the common shares to beissued in the merger. In accordance with ASC 855, management evaluated all activity of the Company through the date of filing, (the issue date of the financial statements) and concluded that no other subsequent events have occurred that would require recognition or disclosure in the financial statements.
