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ASC 740, &amp;#147;Income Taxes&amp;#148; (&amp;#147;ASC 740&amp;#148;).&amp;#160;&amp;#160;As a result of the implementation of ASC 740, the Company
recognized no adjustment in the net liability for unrecognized income tax benefits.&amp;#160;&amp;#160;The Company believes there are no
potential uncertain tax positions and all tax returns are correct as filed.&amp;#160;&amp;#160;Should the Company recognize a liability
for uncertain tax positions; the Company will separately recognize the liability for uncertain tax positions on its balance sheet.&amp;#160;&amp;#160;Included
in any liability for uncertain tax positions, the Company will also record a liability for interest and penalties.&amp;#160;&amp;#160;The
Company&amp;#146;s policy is to recognize interest and penalties related to uncertain tax positions as a component of the current
provision for income taxes.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Substantial changes in the company&amp;#146;s
ownership have occurred, and therefore there is an annual limitation of the amount of Parent&amp;#146;s pre-acquisition net operating
loss carryforward which can be utilized. &amp;#160;Accordingly, only the post-acquisition net operating loss carryforward has been
included for Parent.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Company has not made provision for
income taxes in the nine months ended May 31, 2013 and 2012, respectively, since the Company has the benefit of net operating losses
carried forward in these periods.&lt;/p&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.</ElementDefenition><ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef

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Reference 7: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Statement of Financial Accounting Standard (FAS)

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 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.



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 -Publisher FASB

 -Name Statement of Financial Accounting Standard (FAS)

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 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.



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