Related Party Disclosures

3 Months Ended

Nov. 30, 2012

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

Note 7. Related Party Transactions

The Company entered into a five year lease with Jeff Mills, a director and stockholder of the Company, for approximately 2,650 square feet of space used for offices and operations equipment storage at 11974 Portland Avenue, Burnsville, Minnesota.  The lease commenced on December 15, 2006 at a monthly rent of $2,650 for the five year term of the lease and contains an option to renew for an additional term of one year at a monthly rent of $3,650.  In November 2011, the Company entered into a three year lease renewal through December 15, 2014 at a monthly rent of $2,650 for the period of December 16, 2011 to December 15, 2012, $2,750 for the period of December 16, 2012 to December 15, 2013 and $2,850 for the period of December 16, 2013 to December 15, 2014 with the option to renew the lease for an additional term of one year at a monthly rent of $3,500. The Company's lease payments to the director for the three months ended November 30, 2012 and 2011, totaled $7,950 for each period. For the nine months ended November 30, 2012 and 2011, the Company recorded $23,850 in lease payments to the director for each period. As of November 30, 2012, the Company owed $7,950 in the form of related party accounts payable to Jeff Mills.  No amount was payable as of February 29, 2012.

Minimum lease payments at November 30, 2012 are as follows:
FY 2013	$       8,250
FY 2014	33,300
FY 2015	25,650
	$     67,200

Loan from Director/Stockholder

As of November 30, 2012, the Company had an outstanding working capital loan of $25,000 from Jeff Mills, a director/stockholder of the Company.  The loan is due on demand and bears annual interest at 7.5%.  The Company made principal payments of $0 and received a draw of $25,000 during the nine months ended November 30, 2012.  Interest expense incurred on this loan for the three months ended November 30, 2012 and 2011 was $255 and $3, respectively, and for the nine months ended November 30, 2012 and 2011 was $255 and $3,631, respectively.

Advance from Director/Stockholder

As of November 30, 2012, the Company had an outstanding cash advance of $23,500 from Richard Pomije, a director/stockholder and chairman of the Company.  The advance does not accrue interest and is due and payable as funds become available in the future.