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Loan from Related Parties
9 Months Ended
Apr. 30, 2017
Summary of Investments, Other than Investments in Related Parties [Abstract]  
Loan to Related Party

Note 5 - Loans from Related Parties

 

On January 16, 2017, Joseph Moscato, Chief Executive Officer and director (“Moscato”), and Lawrence Salvo, Senior Vice President and director (“Salvo”), both made an unsecure $250,000, non-interest bearing, advances to the Company, $500,000 in the aggregate, which the Company paid to Emmaus Life Sciences, Inc. pursuant to the Emmaus Letter of Intent (“Emmaus LOI”) (see Note 8). Both Moscato and Salvo made other advances ($75,820 and $82,803, respectfully) to permit the Company to pay certain third party expenses in connection with the implementation of the Company’s repurposed business plan, including legal, accounting, transfer agent, Edgarization, and press release fees. On April 27, 2017, the Company retired 100% of such advances, $658,622 in the aggregate (the “Moscato – Salvo Advances”) (Note 10).

HDS received substantially all of its funding from a shareholder, who owned 98.9% of the Company as of December 31, 2016. The loan is unsecured, matures on December 31, 2019 and accrued interest at 0.75% per annum through January 19, 2017, and bearing no interest thereafter. Upon acquisition of HDS by the Company (see Note 12), the outstanding principal balance was $13,239,837 and total accrued interest of $191,869. This loan is subject to a call option (Note 12) which, if exercised, the principal and accrued interest through January 18, 2017 would be eliminated. From January 19, 2017 through January 31, 2017, the loan increased $68,000 and for the three months ended April 30, 2017, the loan principal increased by $241,404. As of April 30, 2017, the outstanding principal balance was $ 13,549,241.