Note 5 - Notes Payable, Related Parties

4 Months Ended

Feb. 28, 2012

Note 5 - Notes Payable, Related Parties [Abstract]

NOTE 5 – NOTES PAYABLE, RELATED PARTIES

Notes payable as of February 29, 2012 and August 31, 2011 are comprised of the following:

	February 29, 2012 (unaudited)		August 31, 2011
Notes payable, 8% per annum, due on demand, unsecured, in default	$	132,736	$	265,474
Note payable, 8% per annum, due on demand, unsecured		80,243		-
Total	$	212,979	$	265,474

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 an 8% per annum interest rate, unsecured and are due on demand. During the six months ended February 29, 2012, the Company issued an aggregate of 3,318,425 shares of common stock, valued at $0.04 per share in settlement of $132,737 of the outstanding notes payable.

During the six months ended February 29, 2012, the Company issued a note in amount of $80,243 in exchange for operating funds provided by a shareholder of its majority owned subsidiary. The note bears an 8% per annum interest rate, unsecured and are due on demand.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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