RELATED PARTY TRANSACTIONS

9 Months Ended

Oct. 31, 2012

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 6: RELATED PARTY TRANSACTIONS

As at October 31, 2012, affiliates and related parties are due a total of $668,831, which is comprised of $515,000 cash loans, $146,525 of accrued compensation due to related parties converted to a note payable, $6,000 in unpaid compensation, and $1,306 due to related parties for reimbursable expenses.  During the three months ended October 31, 2012, unpaid compensation increased by $6,000, and reimbursable expenses decreased by $319.

The cash loans include a Convertible Note Payable in the amount of $500,000 dated September 10, 2012, which is interest free, is payable within two (2) years, and contains a provision to convert the loan into shares of the Company’s common stock.  Additional cash loans in the amount $15,000 represent funds advanced to the Company for the purpose of short term cash flow requirements, are unsecured, interest free, and payable upon demand. The total amount of $515,000 is included as a related party loan in the accompanying consolidated balance sheets.

The accrued compensation due to related parties is represented by a Convertible Note Payable in the amount of $168,000, which is interest free, is payable upon demand, and contains a provision to convert the loan into shares of the Company’s common stock.  As of October 31, 2012, cash repayments have been made in the amount of $21,475, resulting in a principal balance owed at October 31, 2012 of $146,525, and is included as a related party loan in the accompanying consolidated balance sheets.

The Company owes the president and CEO of the Company $6,000 in unpaid compensation, and $1,306 for expenditures paid on behalf of the Company.  The amount owed is unsecured, non-interest bearing, and has no specified repayment terms. The amount is included as a related party payable in the accompanying consolidated balance sheets.