SETTLEMENT OF PRIOR LIABILITIES

3 Months Ended

Nov. 30, 2012

Notes to Financial Statements

NOTE 3 - SETTLEMENT OF PRIOR LIABILITIES

We have settled certain payables to reflect the acceptance by these creditors of lesser amounts. Accordingly, amounts accrued with respect to these account holders have been reduced to $-0- from $538,457, and we have recognized other income in that amount in the consolidated statement of operations for the period from inception (January 31, 2007) through November 30, 2012.  No settlements were recognized for the three months ended November 30, 2012 and 2011.