Related Party Transactions

12 Months Ended

Nov. 30, 2012

Related Party Transactions [Abstract]

Related Party Transactions

12.       Related Party Transactions

The Company paid fees to a software consulting firm (“Consultant”) of $192,000 in both fiscal 2012 and 2011. All such work performed by the Consultant is the property of the Company.  An officer of the Company has performed work for the Consultant, including disbursement services, in which funds that were remitted by the Company to the Consultant were subsequently transferred to a company controlled by the officer to distribute such funds to appropriate vendors.

At November 30, 2012 and 2011, total unpaid salary owed to the Company’s chief executive officer was $318,946 and $244,450, which has been converted into unsecured short-term loans bearing interest at 12%.  Accrued interest on such loans was $51,233 and $19,840 as of November 30, 2012 and 2011 which is included in the other current liabilities.

Additionally, the Company owes its chief executive officer $183,480 and $233,280 as of November 30, 2012 and 2011 for cash loans made directly to the Company.  Accrued interest payable on such loans was $74,345 as of November 30, 2012 and $29,953 as of November 30, 2011 which is included in other current liabilities.

The Company also owes its chief executive officer $104,571 and $109,222 for unreimbursed business expenses, which are included in the Company’s accounts payable balance as of November 30, 2012 and 2011.

At November 30, 2012, the Company owes $20,000 each to its chief executive officer and chief information officer for unissued common stock that was purchased by its chief executive officer and converted by its chief information officer from debt into equity during fiscal 2012.