SETTLEMENT OF PRIOR LIABILITIES

9 Months Ended

May 31, 2013

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 May 31, 2013.  No settlements were recognized for the nine months ended May 31, 2013 and 2012.