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10. RELATED PARTY TRANSACTIONS
12 Months Ended
Aug. 31, 2014
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

During fiscal year 2014, included in bonus expenses to officers was $150,000, of which $60,000 was accrued bonus representing 5% of the Company’s net income before bonuses and taxes, not exceeding $60,000, paid to the Corporate Secretary, Virginia Woltosz, as an annual bonus as part of the terms of the original sale of Words+ to the Company in 1996. In addition, $60,000 was accrued under the employment agreement with Walter Woltosz, the Company’s Chief Executive Officer. The other $30,000, paid in September 2013, was a fiscal year 2013 performance bonus to Walter Woltosz. As of August 31, 2014, $120,000 was accrued. These amounts were paid in September 2014.

 

During fiscal year 2013, included in bonus expenses to officers was $90,000, of which $60,000 was accrued bonus representing 5% of the Company’s net income before bonuses and taxes, not exceeding $60,000, paid to the Corporate Secretary, Virginia Woltosz, as an annual bonus as part of the terms of the sale of Words+ to the Company in 1996. The other $30,000, paid in September 2012, was fiscal year 2012 performance bonus to Walter Woltosz, the Company’s Chief Executive Officer. As of August 31, 2013, $60,000 was accrued and was paid in September 2013.