Commitment and Contingencies

3 Months Ended

Nov. 30, 2012

Commitments and contingencies

Commitments and Contingencies Disclosure [Text Block]

Note 8. Commitments and Contingencies

The Company is exposed to asserted and unasserted claims encountered in the normal course of business.  In the opinion of management, the resolution of these matters will not have a material adverse effect on the Company's financial position or results of operations.

On August 22, 2011, the Company entered into a nine month agreement with Enable Consulting, LLC (“Enable”) to complete the design and development of the Company’s Sales Center Application.  The Company committed up to $66,000 for the development and maintenance support of this software application through May 31, 2012.  On June 27, 2012, the Company signed an amendment to its existing contract with Enable which establishes payment terms for the remaining balance due to Enable at May 31, 2012, of $36,000, pertaining to subscription fees from the original contract, and prioritizes the remaining unresolved maintenance items which Enable will complete by August 15, 2012.  As of November 30, 2012, the prioritized maintenance items previously agreed to remained unresolved and the balance due of $22,500 was reversed and credited to professional fees.

On December 8, 2010, the Company entered into a five year strategic partnership agreement with the National Interscholastic Athletic Administrators Association (“NIAAA”).  The NIAAA and DigitalTown will work together to establish a national, standardized system for recording schedules, scores, rosters and statistics for interscholastic sports teams and individual students.  Pursuant to the agreement, the Company has committed to pay the expenses related to this strategic partnership; however any expenses in excess of $5,000 must be preapproved by the Company.  The Company has committed to deposit $50,000 for such expenses for the first fiscal year of the contract which the Company has paid as of February 29, 2012.  In addition, as of November 30, 2012, the Company has paid $20,000 of the $50,000 due for the second fiscal year of the contract.  In addition, the Company has committed to donate 25% of the annual net sponsorship revenue in the scheduling and stats areas of its websites, with a total annual donation cap of $3,000,000, to yet to be named program funds that promote youth activities and the NIAAA.  Lastly, the Company has committed to a minimal revenue share of $100,000 per year with the future launch of its beta 3 software.  As of November 30, 2012, the Company has not yet launched its beta 3 software nor has it generated any net sponsorship revenue.

Disclosure Text Block Supplement [Abstract]

Commitments Disclosure [Text Block]

Note 4. Deferred Officer Compensation

Richard Pomije, the Chairman of the Company, has elected to forego a portion of his salary at various times due to limited operating funds. These amounts do not accrue interest and are due and payable as funds become available in the future. During the nine months ended November 30, 2012, the Company recorded $84,616 of deferred officer compensation.  During the nine months ended November 30, 2011, the Company recorded $8,654 of deferred officer compensation and made a payment of $58,942.  As of February 29, 2012; no balance was noted; whereas, as of November 30, 2012, $84,616 was recorded as deferred officer compensation.