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INCOME TAXES

12 Months Ended

Aug. 31, 2013

For the year ended August 31, 2013, the Company has incurred a net loss of $1,332,991 and, therefore, has no tax liability. The net deferred tax asset generated by the loss carry-forward has been fully reserved. The cumulative net operating loss carry-forward is approximately $1,412,000 at August 31, 2012, and will expire beginning in the year 2031.

The provision for Federal income tax consists of the following for the years ended August 31, 2013 and 2012:

	2013			2012
Federal income tax benefit attributable to:
Current operations	$	453,217		$	24,064
Less: valuation allowance		(453,217	)		(24,064	)
Net provision for Federal income taxes	$	—		$	—

The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows as of August 31, 2013 and 2012:

	2013			2012
Deferred tax asset attributable to:
Net operating loss carryover	$	479,948		$	26,731
Valuation allowance		(479,948	)		(26,731	)
Net deferred tax asset	$	—		$	—

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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