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Related Party Disclosures
3 Months Ended
Jan. 31, 2013
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block]

NOTE 9 - RELATED PARTY TRANSACTIONS

 

These related party transactions are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties.

 

Upon the acquisition of DTS8 Holdings on April 30, 2012, the Company assumed a loan from Sean Tan to DTS8 Holdings. As of January 31, 2013, and April 30, 2012, $120,000 and $120,000 was recorded as payable to shareholder who is the Company’s Chief Executive Officer and director. No interest payment was due. The payable to the shareholder bears no interest and has no fixed term of repayment. Sean Tan has agreed not to demand payment within the next fiscal year.

 

On March 31, 2011, the Company entered into a management agreement with Sean Tan, the Company’s officer and director to serve as the President and Chief Executive Officer of the Company. Mr. Tan’s engagement commenced on March 1, 2011, and shall continue on a year-to-year basis until terminated by either party upon 60 days prior written notice to the other party. The monthly management fee payments of $6,000 to Mr. Tan is paid in arrears on the last day of each month.  

 

In January 2013, the Company satisfied the outstanding bonds of $4,000,000, plus accrued interest of $80,000, for a total of $4,080,000, by issuing 13,600,000 restricted shares of common stock at a price of $0.30 per share to Sean Tan. The Company recorded a bond conversion loss of $408,000; which is the difference of the bond conversion price of $0.30 per share and $0.33 per share being the deemed fair market price at the date of the share issuance.