INCOME TAXES (Tables)

12 Months Ended

Aug. 31, 2012

Notes to Financial Statements

Reconciliation of the provision (benefit) for income taxes

The reconciliation of the provision (benefit) for income taxes computed at the U.S. federal statutory rate to the Company’s effective tax rate for the years ended August 31, 2012 and 2011 is as follows:

	2012			2011
Federal benefit at Statutory rate	$	574,000		$	181,000
State income tax, net of federal benefit		34,000			11,000
Unused net operating losses		(608,000	)		(192,000	)
Provision (Benefit) for income taxes	$	-		$	-