SETTLEMENT OF PRIOR LIABILITIES

6 Months Ended

Feb. 28, 2013

Settlement Of Prior Liabilities

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 February 28, 2013. No settlements were recognized for the six months ended February 28, 2013 and February 29, 2012.