DUE TO FACTOR - RELATED PARTY (Tables)

3 Months Ended

May 31, 2013

Due To Factor - Related Party Tables

Schedule of Factoring Due to Related Parties

	May 31, 2013			February 28, 2013
On August 25, 2011, the Company entered into a purchase and sale factoring agreement with a related party whereby the Company sells certain accounts receivable to the factor. Under the terms of this agreement, the factor makes advances to the Company based on certain international accounts receivable. Interest is computed at 8% of the factored amount for the period the factored accounts receivable remain outstanding. Based on this arrangement, the Company is liable to the factor if the accounts receivable are not collected. Payments are due on the Note as receivables are collected. The agreement was initially due to expire on December 15, 2012, and was extended on April 1, 2013 under a new simple note agreement at 10%. Monthly payments of $2,159 are due under the note until October 1, 2014, when all remaining principal and interest are due. Under the note, outstanding accrued interest was added to principal as of the amendment date. The May 31, 2013 balance is shown net of a $22,109 debt discount.	$	212,931		$	235,040
Less: current maturities		(0	)		(0	)
Long-term Portion	$	212,931		$	235,040