Related Party Transactions

3 Months Ended

Dec. 31, 2012

Related Party Transactions [Abstract]

Related Party Transactions

6. Related Party Transactions:

On June 15, 2012, the Company purchased certain assets from 2023682 Ontario Inc., a related party in which the Company's CEO was the sole director of 2023682 Ontario Inc. The value of the assets purchased by the Company was carried over at the historical carrying amounts that were recorded by the related party. The purchase consideration consisted of cash of CDN $100,000 and a promissory note in the amount of CDN $500,000 (see Note 7). Because the purchase was from a commonly controlled related party, the excess of the purchase price over the carrying value of the assets purchased has been reflected as a deduction against Shareholders' Equity (Deficit), equivalent to a distribution of equity to the shareholder. The assets purchased and consideration given is as follows:

Property and equipment	$	88,596
Patent claims		10,374
Inventory		1,770
Total assets purchased		100,740
Purchase price		(610,260	)
Discount on note payable (Note 7)		(210,415	)
Deduction in shareholders' equity (deficit)	$	(299,105	)

This transaction was accounted for as a transfer between entities under common control, and the cost of these assets is based on the transferor's carrying value of the asset. Management determined that the assets acquired did not meet the definition of a "business" as defined by accounting standards, or as a "predecessor business", as defined in U.S. Securities and Exchange Commission (SEC) rules.

As at December 31, 2012, the Company had advanced to 2023682 Ontario Inc. $68,009. The amount is unsecured, non-interest bearing and is recorded as a loan receivable with no specific terms of repayment.