Note 2. Related Parties

6 Months Ended

Feb. 28, 2014

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

Note 2.  Related Parties

J’Amy Owens is our co-founder, sole officer and director and principal shareholder.  Ms. Owens is involved in other business activities, and as a result may face a conflict in selecting between the Company and other business interests.  

We lease our corporate facilities pursuant to a lease agreement with J’Amy Owens, providing for monthly rent of $10,000 through October 2017.

During the three months ended February 28, 2014, we issued 2,000,000 shares of our common stock to Ms. Owens in connection with personal guarantees of line of credit borrowing facilities.  We recorded financing expense of $160,000 based on the closing stock price at date of issuance.

During the six months ended February 28, 2014, we issued 4,600,000 shares of our common stock to two employees.  These shares are subject to a proxy to vote by Ms. Owens, as are other shares owned by these employees.  We recorded stock-based compensation expense of $188,000 during the six months ended February 28, 2014 relating to shares issued based on closing stock prices at date of issuance.