Equity

3 Months Ended

Feb. 28, 2013

Equity [Abstract]

Equity

Note 12 – Equity

As discussed in Note 9, we entered into various transactions where we issued convertible notes to third parties in exchange for existing notes payable with various lenders.  Such convertible notes allowed the new debt holders to convert outstanding debt principal into shares of the Company’s common stock at a discount to the trading price of the common stock. To the extent, if any, that there was a beneficial conversion feature associated with these debts, the beneficial conversion feature was bifurcated from the host instrument and accounted for as a freestanding derivative.  As a result of such conversions, during the first quarter of fiscal 2013 a total of $301,903 of outstanding debt principal was converted into 136,217,067 shares of the Company’s common stock.

During the first quarter of fiscal 2013, one debt holder settled outstanding debt payable of $75,000 for 2,500,000 shares of our common stock, which was valued at $6,250 at the time of conversion, resulting in a gain on the settlement of liabilities of $68,750.