Statement of Cash Flows

3 Months Ended

Nov. 30, 2011

Notes to Financial Statements

Statement of Cash Flows

NOTE 10 – STATEMENT OF CASH FLOWS

For the three months ended November 30, 2011, these supplemental non-cash investing and financing activities are summarized as follows:

	Amount
On October 6, 2012, the Company converted $25,403 of principal and accrued interest into 635,069 shares of its common stock.  These shares were issued in October 2011.	$ 25,403
The Company recognized induced conversion expense as a result of reducing the conversion price on non-related party notes converted during the first quarter of fiscal 2012.	25,403
On October 6, 2012, the Company converted $71,128 of principal and accrued interest into 1,778,193 shares of its common stock.  This principal and interest was payable to our CEO, Anthony Silverman, a related party.  The shares were issued in October 2012.	71,128
The Company recognized a loss on the conversion of related party notes during the first quarter of fiscal 2012.	70,000
The Company recognized a discount on the $10,000 convertible promissory note issued to a related party on October 7, 2012.  The discount is related to a beneficial conversion feature issued in connection with this note.	10,000
On October 31, 2011, the Company entered into a note payable agreement to finance $8,078 of directors and officer’s insurance premiums.  The note bears interest at a rate of 9.99% per annum and was due in nine monthly installments of $932, including principal and interest, beginning on November 30, 2010.  This note was paid in full during fiscal 2011.	8,078
Total non-cash transactions from investing and financing activities.	$      210,012

For the three months ended November 30, 2010, these supplemental non-cash investing and financing activities are summarized as follows:

	Amount
On October 31, 2010, the Company entered into a note payable agreement to finance $8,078 of directors and officer’s insurance premiums.  The note bears interest at a rate of 9.99% per annum and was due in nine monthly installments of $935, including principal and interest, beginning on November 30, 2010.  This note was paid in full during fiscal 2011.	$          8,078
Total non-cash transactions from investing and financing activities.	$        17,874

For the period since reentering the development stage on June 1, 2011 to November 30, 2011, these supplemental non-cash investing and financing activities are summarized as follows:

	Amount
On October 6, 2012, the Company converted $25,403 of principal and accrued interest into 635,069 shares of its common stock.  These shares were issued in October 2011.	$ 25,403
The Company recognized induced conversion expense as a result of reducing the conversion price on non-related party notes converted during the first quarter of fiscal 2012.	25,403
On October 6, 2012, the Company converted $71,128 of principal and accrued interest into 1,778,193 shares of its common stock.  This principal and interest was payable to our CEO, Anthony Silverman, a related party.  The shares were issued in October 2012.	71,128
The Company recognized a loss on the conversion of related party notes during the first quarter of fiscal 2012.	70,000
The Company recognized a discount on the $10,000 convertible promissory note issued to a related party on October 7, 2012.  The discount is related to a beneficial conversion feature issued in connection with this note.	10,000
On October 31, 2011, the Company entered into a note payable agreement to finance $8,078 of directors and officer’s insurance premiums.  The note bears interest at a rate of 9.99% per annum and was due in nine monthly installments of $932, including principal and interest, beginning on November 30, 2010.  This note was paid in full during fiscal 2011.	8,078
During fiscal 2011, the Company converted $3,720 of principal and accrued interest into 92,998 shares of its common stock.  These shares were issued in July 2011.	3,720
The Company recognized conversion expense as a result of reducing the conversion price on notes converted during fiscal 2011.	6,076
Total non-cash transactions from investing and financing activities.	$      219,808