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Related Party Transactions
9 Months Ended
Aug. 31, 2014
Related Party Transactions [Abstract]  
Related Party Transactions

Note 13 – Related Party Transactions

 

In connection with software development costs, we paid fees to a third-party intellectual property development firm (the “Consultant”) for the nine-month periods ended August 31, 2014 and 2013, of $121,500 and $143,500, respectively, and $25,500 and $48,000 for the three-month periods ended August 31, 2014 and 2013 respectively. One of our officers performed work for the Consultant, including the function of distributing such funds to appropriate vendors, for which he was not compensated. The fees for software development services performed by the Consultant were deemed to be operating costs.

 

During the nine months ended August 31, 2014, the Company borrowed $48,075 from its Chief Executive Officer. The debt is payable on demand and bears an annual interest rate of 24%.

 

At August 31, 2014 and November 30, 2013, we owed our chief executive officer $1,270,484 and $938,210, respectively, for loans he provided to the Company, unpaid salary and unpaid business expenses. During the first nine months of fiscal 2014, the Company settled an outstanding debt payable to the chief executive officer of $10,565 for 5,000,000 shares of common stock, which was valued at $9,500 at the time of the conversion, resulting in a gain of $1,065. No such transaction occurred during the first nine months of fiscal 2013.