NOTES PAYABLE, RELATED PARTIES

6 Months Ended

Feb. 28, 2014

Payables and Accruals [Abstract]

NOTES PAYABLE, RELATED PARTIES

NOTE 6 – NOTES PAYABLE, RELATED PARTIES

Notes payable as of February 28, 2014 and August 31, 2013 are comprised of the following:

	February 28, 2014		August 31, 2013
Note payable, 8% per annum, due on demand, unsecured	$	23,821	$	23,821
Note payable, 8% per annum, due on demand, unsecured		34,075		34,075
Note payable, 8% per annum, due on demand, unsecured		16,317		16,317
Note payable, 8% per annum, due on demand, unsecured		37,827		37,827
Note payable, 8% per annum, due on demand, unsecured		10,053		10,053
Note payable, 8% per annum, due on demand, unsecured		15,933		15,933
	$	138,026	$	138,026
Add: Accrued interest		35,995		30,519
Total	$	174,021	$	168,545

From November 9, 2010 (date of inception) through August 31, 2011, the Company issued two notes in the aggregate of $265,474 in exchange for operating expenses paid on behalf of the Company by two shareholders of its majority owned subsidiary. The notes bear interest at an annual rate of 8%, are unsecured and due on demand.

During the year ended August 31, 2012, the Company issued an aggregate of 118,880 shares of common stock, valued at $6.75 - $24 per share in settlement of $357,124 of the outstanding notes payable and accrued interest and recorded a loss on settlement of notes payable and accrued interest of $656,000.

During the year ended August 31, 2012, the Company issued six notes totaling $138,026 in exchange for operating funds provided by a shareholder of its majority owned subsidiary.  The notes bear interest at an annual rate of 8%, are unsecured, and are due on demand.

The Company charged to operations interest expense on the above notes of $5,476 and $5,001 for the six months ended February 28, 2014 and 2013, respectively and $2,753 and $2,761 for the three months ended February 28, 2014 and 2013, respectively.