PROMISSORY NOTES PAYABLE	3 Months Ended
Oct. 31, 2020
Notes to Financial Statements
PROMISSORY NOTES PAYABLE	8. PROMISSORY NOTES PAYABLE SHORT-TERM NOTES PAYABLE On June 9, 2020, the Company issued a 90-day unsecured convertible promissory note in the amount of $25,000, with interest at 12% interest per annum and maturing on September 7, 2020. The unsecured convertible promissory note was convertible into shares of common stock of the Company at $0.20 per share, which was in excess of the closing market price of the Company’s common stock on June 9, 2020 of $0.07 per share. On August 31, 2020, the principal balance of the unsecured convertible promissory note of $25,000, plus accrued interest payable of $682, was repaid through conversion into 128,410 shares of common stock. On October 29, 2020, the Company issued a six-month unsecured promissory note to Daniel Crosser, who is an approximate 13% shareholder of the Company, in the amount of $100,000, with interest at 10% per annum. The note matures on April 29, 2021, with the principal balance outstanding, plus accrued but unpaid interest, being due and payable on the maturity date. As of October 31, 2020, accrued interest related to the unsecured promissory note was $56. LONG-TERM NOTES PAYABLE On September 16, 2020, the Company issued a two-year unsecured convertible promissory note in the amount of $100,000, with interest at 5% per annum and maturing on September 15, 2022. The note is convertible into shares of common stock of the Company at $0.80 per share, which was in excess of the closing market price of the Company’s common stock on September 16, 2020 of $0.26 per share. If the closing price of the Company’s common stock reaches $1.20 per share or greater, the outstanding principal and all accrued interest on this note shall automatically convert into common stock at the specified conversion rate. As of October 31, 2020, accrued interest payable related to the unsecured convertible promissory note payable was $616. On October 7, 2020, Rivulet Films, Inc., a wholly-owned subsidiary of the Company (“Rivulet Films”), issued a multiple advance promissory note (the “Note”) to Lawrence Silver, an approximate 11% shareholder of the Company, in the amount of $1,000,000, with interest at 10% per annum. The Note matures on October 6, 2022, with the principal balance outstanding, plus accrued but unpaid interest, being due and payable on the maturity date. The Note is secured by a first lien security interest on all of the assets of Rivulet Films (including its equity interest in PBP Productions LLC), personal guarantees of the Company’s officers, Michael Witherill and Aaron Klusman, and a corporate guarantee of the Company. Rivulet Films is required to use borrowings under the Note primarily to pay production costs associated with the movie production currently entitled “Please Baby Please”. Borrowings under this Note may be repaid at any time and reborrowed until the maturity date. Rivulet Films is required to apply any other funds received by it for the purpose of film financing and then any excess proceeds to pay any principal and interest owing under this Note. As of October 31, 2020, principal borrowings outstanding under the Note were $800,000, and related accrued interest was $3,236, which has been capitalized as project development cost (see Note 7).

PROMISSORY NOTES PAYABLE

3 Months Ended

Oct. 31, 2020

8. PROMISSORY NOTES PAYABLE

SHORT-TERM NOTES PAYABLE

On June 9, 2020, the Company issued a 90-day unsecured convertible promissory note in the amount of $25,000, with interest at 12% interest per annum and maturing on September 7, 2020. The unsecured convertible promissory note was convertible into shares of common stock of the Company at $0.20 per share, which was in excess of the closing market price of the Company’s common stock on June 9, 2020 of $0.07 per share. On August 31, 2020, the principal balance of the unsecured convertible promissory note of $25,000, plus accrued interest payable of $682, was repaid through conversion into 128,410 shares of common stock.

On October 29, 2020, the Company issued a six-month unsecured promissory note to Daniel Crosser, who is an approximate 13% shareholder of the Company, in the amount of $100,000, with interest at 10% per annum. The note matures on April 29, 2021, with the principal balance outstanding, plus accrued but unpaid interest, being due and payable on the maturity date. As of October 31, 2020, accrued interest related to the unsecured promissory note was $56.

LONG-TERM NOTES PAYABLE

On September 16, 2020, the Company issued a two-year unsecured convertible promissory note in the amount of $100,000, with interest at 5% per annum and maturing on September 15, 2022. The note is convertible into shares of common stock of the Company at $0.80 per share, which was in excess of the closing market price of the Company’s common stock on September 16, 2020 of $0.26 per share. If the closing price of the Company’s common stock reaches $1.20 per share or greater, the outstanding principal and all accrued interest on this note shall automatically convert into common stock at the specified conversion rate. As of October 31, 2020, accrued interest payable related to the unsecured convertible promissory note payable was $616.

On October 7, 2020, Rivulet Films, Inc., a wholly-owned subsidiary of the Company (“Rivulet Films”), issued a multiple advance promissory note (the “Note”) to Lawrence Silver, an approximate 11% shareholder of the Company, in the amount of $1,000,000, with interest at 10% per annum. The Note matures on October 6, 2022, with the principal balance outstanding, plus accrued but unpaid interest, being due and payable on the maturity date. The Note is secured by a first lien security interest on all of the assets of Rivulet Films (including its equity interest in PBP Productions LLC), personal guarantees of the Company’s officers, Michael Witherill and Aaron Klusman, and a corporate guarantee of the Company. Rivulet Films is required to use borrowings under the Note primarily to pay production costs associated with the movie production currently entitled “Please Baby Please”. Borrowings under this Note may be repaid at any time and reborrowed until the maturity date. Rivulet Films is required to apply any other funds received by it for the purpose of film financing and then any excess proceeds to pay any principal and interest owing under this Note. As of October 31, 2020, principal borrowings outstanding under the Note were $800,000, and related accrued interest was $3,236, which has been capitalized as project development cost (see Note 7).