Debt Disclosures	3 Months Ended
Nov. 30, 2014
Notes
Debt Disclosures	LOANS PAYABLE November 30, August 31, 2014 2014 (Unaudited) Loans payable $218,300 $218,300 The loans payable are due on demand, are unsecured, and are non-interest bearing. During the three-month period ended November 30, 2014 and 2013, the Company modified terms with existing or new lenders for loans payable aggregating $0 and $62,000, respectively. Substantially all modifications consist in adding conversion terms to such notes. During the three-month period ended November 30, 2014 and 2013, the Company made principal repayments aggregating $0 and $167,875, respectively. During the three-month period ended November 30, 2014 and 2013, the Company generated proceeds of $0 and $120,300 from loans payable, respectively. CONVERTIBLE DEBENTURES At November 30, 2014 and August 31, 2013 convertible debentures consisted of the following: November 30, 2014 August 31, 2014 (Unaudited) Convertible Debentures $772,118 $688,751 Unamortized debt discount (76,584) (136,688) Total $695,534 $552,063 The Convertible Debentures mature through May 2015, some of which are payable on demand and bear interest at ranges between 6% and 15%. The convertible promissory notes are convertible at ratios varying between 50 and 55% of the closing price at the date of conversion through, at its most favorable terms for the holders, the average of the three lowest closing bids for a period of 5 days prior to conversion. As of November 30, 2014, an aggregate of $405,571 of convertible promissory notes have matured. During the three-month period ended November 30, 2014 and 2013, the Company modified terms with existing or new lenders for loans payable aggregating $0 and $127,500, respectively. Substantially all modifications consist in adding conversion terms to such notes. During the three-month period ended November 30, 2014 and 2013, the Company issued 270,125,840 and 93,178,812 shares of its common stock, respectively, to satisfy its obligations under principal repayments aggregating $11,782 and $167,875, respectively. Additionally, the Company issued 38,200,798 shares of its common stock to satisfy interest pursuant to certain convertible promissory notes during the three-month period ended November 30, 2014. The fair value of the shares of common stock amounted to $1,557 during such period and has been recorded as interest expense. During the three-month period ended November 30, 2014 and 2013, the Company generated proceeds of $95,000 and $0, respectively, from the issuance of convertible promissory notes payable.

Debt Disclosures

3 Months Ended

Nov. 30, 2014

Notes

Debt Disclosures

LOANS PAYABLE

November 30, August 31,

2014 2014

(Unaudited)

Loans payable $218,300 $218,300

The loans payable are due on demand, are unsecured, and are non-interest bearing.

During the three-month period ended November 30, 2014 and 2013, the Company modified terms with existing or new lenders for loans payable aggregating $0 and $62,000, respectively. Substantially all modifications consist in adding conversion terms to such notes.

During the three-month period ended November 30, 2014 and 2013, the Company made principal repayments aggregating $0 and $167,875, respectively.

During the three-month period ended November 30, 2014 and 2013, the Company generated proceeds of $0 and $120,300 from loans payable, respectively.

CONVERTIBLE DEBENTURES

At November 30, 2014 and August 31, 2013 convertible debentures consisted of the following:

November 30, 2014 August 31, 2014

(Unaudited)

Convertible Debentures $772,118 $688,751

Unamortized debt discount (76,584) (136,688)

Total $695,534 $552,063

The Convertible Debentures mature through May 2015, some of which are payable on demand and bear interest at ranges between 6% and 15%. The convertible promissory notes are convertible at ratios varying between 50 and 55% of the closing price at the date of conversion through, at its most favorable terms for the holders, the average of the three lowest closing bids for a period of 5 days prior to conversion. As of November 30, 2014, an aggregate of $405,571 of convertible promissory notes have matured.

During the three-month period ended November 30, 2014 and 2013, the Company modified terms with existing or new lenders for loans payable aggregating $0 and $127,500, respectively. Substantially all modifications consist in adding conversion terms to such notes.

During the three-month period ended November 30, 2014 and 2013, the Company issued 270,125,840 and 93,178,812 shares of its common stock, respectively, to satisfy its obligations under principal repayments aggregating $11,782 and $167,875, respectively. Additionally, the Company issued 38,200,798 shares of its common stock to satisfy interest pursuant to certain convertible promissory notes during the three-month period ended November 30, 2014. The fair value of the shares of common stock amounted to $1,557 during such period and has been recorded as interest expense.

During the three-month period ended November 30, 2014 and 2013, the Company generated proceeds of $95,000 and $0, respectively, from the issuance of convertible promissory notes payable.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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