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Related Party Transactions
12 Months Ended
Aug. 31, 2013
Notes  
Related Party Transactions

Note 6  Related Party Transactions

 

Professional Fees - Legal services are provided by a law firm in which a former Director serves as senior partner. The Director resigned effective May 18, 2012 and is no longer considered a related party.  Legal fees and related expenses incurred to such entity amounted to approximately $52,000 through the nine months ended May 31, 2012.

 

Accounting and tax services are provided by an accounting firm in which our former Chief Financial Officer (“CFO”) provides consulting services. The CFO resigned effective May 18, 2012 and is no longer considered a related party.  Accounting and tax fees incurred to such entity amounted to approximately $59,000 through the nine months ended May 31, 2012.

 

Consulting services are provided by an entity in which a former Director is an owner. The Director resigned effective May 18, 2012 and is no longer considered a related party.  There is approximately $41,000 in expense through the nine months ended May 31, 2012.

 

Other - The Company was obligated to its former Chief Executive Officer (“CEO”) for accrued and unpaid compensation and reimbursable expenses in the amount of $157,500. In December 2012, the former CEO converted the amounts owed him into 50,000 shares of Company common stock and a $25,000 promissory notes (see Note 8). The CEO resigned effective May 18, 2012 and is no longer considered a related party.

 

The Company is obligated to its current CEO, who is also the majority stockholder of the Company, for accrued and unpaid compensation and reimbursable expenses as of August 31, 2013 and August 31, 2012 in the amounts of approximately $120,000 and $8,000, respectively (See Note 12). Compensation and expenses amounted to approximately $137,000 and $135,000 in the years ended August 31, 2013 and 2012, respectively.

 

Effective August 16, 2012, our current CEO converted $212,218 of accrued and unpaid compensation and reimbursable expenses owed him into 8,488,720 shares of common stock at $0.025 per share. The fair value of the stock on that date was $0.75 per share and we incurred a charge for share based finance costs of $6,154,322 in the year ended August 31, 2012.