Note 6. Related Party Transactions

3 Months Ended

May 31, 2014

Notes

Note 6. Related Party Transactions

Note 6.  Related Party Transactions

During the three months ended May 31, 2014 and May 31, 2013, we had sales of $376,245 and $230, respectively, to entities controlled by a significant stockholder and member of the Board of Directors.  These related party transactions represent approximately 30% and 0% of total sales for each respective three-month period.  During the nine months ended May 31, 2014 and May 31, 2013, we had sales of $394,679 and $76,776 to these related parties, representing approximately 9% and 3% of total sales for each respective nine-month period.

As of May 31, 2014 and August 31, 2013, our accounts receivable included $221,170 and $24,201, respectively, from these related parties.  Also, included in customer deposits as of August 31, 2013, was $159,980 towards the purchase of a hypothermia system from this same related party.