Note 5. Stockholders' Equity

3 Months Ended

Nov. 30, 2011

Stockholders' Equity Note Disclosure [Text Block]

Note 5.  Stockholders’ Equity

Warrants to Purchase Common Stock Issued for Services. – In October 2011, we entered into an agreement for legal services pursuant to which we agreed to issue the service provider a warrant to purchase 400,000 shares of our common stock at a price of $0.20 per share exercisable for 10 years.  We recorded expense of $98,000, the fair value of warrants determined by utilizing the Black-Scholes-Merton option pricing model with assumptions of 113% volatility, 2.2% interest rate and dividend rate of nil.