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SUBSEQUENT EVENTS
3 Months Ended
Oct. 31, 2020
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

14. SUBSEQUENT EVENTS

 

Proceeds on Multiple Advance Promissory Note

 

Subsequent to October 31, 2020, Rivulet Films borrowed an additional $150,000 under the Multiple Advance Promissory Note (see Note 8), increasing the Company’s total borrowings under this Note to $950,000.

 

Issuance of Promissory Notes

 

On November 10, 2020, the Company issued a three-month unsecured promissory note to Daniel Crosser, who is an approximate 13% shareholder of the Company, in the amount of $200,000, with interest at 5% per annum. The note matures on February 8 2021, with the principal balance outstanding, plus accrued but unpaid interest, being due and payable on the maturity date.

 

On December 10, 2020, the Company issued a three-month unsecured promissory note to Daniel Crosser, who is an approximate 13% shareholder of the Company, in the amount of $160,000, with interest at 5% per annum. The proceeds under this promissory note were received by the Company in November 2020. The note matures on March 10, 2021, with the principal balance outstanding, plus accrued but unpaid interest, being due and payable on the maturity date.

 

Sale of Common Stock

 

On November 20, 2020, the Company sold 1,000,000 shares of common stock to a convertible promissory note holder at $0.10 per share for total proceeds of $100,000.

 

On November 30, 2020, the Company sold an aggregate of 2,200,000 shares of common stock to two existing note holders and shareholders at $0.10 per share for total proceeds of $220,000.

 

On December 3, 2020, the Company entered into a Subscription Agreement to sell 4,800,000 shares of common stock to an unrelated party at $0.10 per share for total proceeds of $480,000 which was subsequently received by the Company in late November and early December 2020.

 

The Company performed an evaluation of subsequent events through the date of filing of these consolidated financial statements with the SEC. There were no material subsequent events which affected, or could affect, the amounts or disclosures in the consolidated financial statements, other than those as described above.