Notes Payable Note

12 Months Ended

Aug. 31, 2013

Notes

Notes Payable Note

Note 8  Notes Payable

On November 9, 2010, the Company borrowed $10,000 from an unrelated party for working capital purposes. The note is unsecured and was due November 9, 2011 with 8% interest per annum. 

In April 2011, the Company borrowed $20,000 from an unrelated party for working capital purposes.  The note is unsecured and payable on demand with 8% interest per annum.

On December 7, 2012, the Company borrowed $10,000 from an unrelated party for working capital purposes. The note is unsecured, non-interest bearing and payable on demand.

On December 13, 2012, the Company incurred a $25,000 note payable to its former CEO as part of a mutual release and settlement agreement for accrued and unpaid compensation and reimbursable expenses owed him.  The note is unsecured and payable on demand with 7% interest per annum.

On January 7, 2013, the Company borrowed $2,000 from an unrelated party for working capital purposes.  The note is unsecured and payable on demand with 15% interest per annum.

Interest expense in the years ended August 31, 2013 and 2012 is $3,852 and $2,406, respectively.