LONG TERM RECEIVABLE

12 Months Ended

Aug. 31, 2012

LONG TERM RECEIVABLE [Text Block]

3. LONG TERM RECEIVABLE

The Company agreed to settle litigation with an unrelated party. Pursuant to a Settlement Deed dated March 5, 2012, the Company became entitled to a settlement sum of $825,000 Australian dollars (“AUD”) (US $858,194), receivable in monthly installments over the course of 72 months, beginning on March 31, 2012. The unpaid balance accrues interest of 10.25% per annum compounded monthly. The receivable is secured by a registered charge against real estate located in Australia. As of August 31, 2012, installments of $156,200AUD and interest of $37,740AUD have been received, and $28,100 AUD has been received subsequent to August 31, 2012.

The settlement amount receivable was recorded during the year ended August 31, 2012 as a recovery to general and administrative expenses.

Payments to be received over the next five fiscal years as follows:

	Principal	Interest	Total
2013	104,056	69,940	173,996
2014	115,237	58,759	173,996
2015	127,620	46,376	173,996
2016	141,334	32,662	173,996
2017	156,521	17,475	173,996
Thereafter	84,386	2,539	86,925
	729,154	227,751	956,905