[X]
|
Quarterly Report pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934
|
[ ]
|
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
Nevada
|
98-0389557
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
644-1812 W. Burbank Blvd, Burbank, CA
|
91506
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer
|
[ ]
|
Accelerated filer
|
[ ]
|
Non-accelerated filer
|
[ ] (Do not check if a smaller reporting company)
|
Smaller reporting company
|
[X]
|
November 30,
|
August 31,
|
|||||||
2012
|
2012
|
|||||||
ASSETS
|
||||||||
Current Assets:
|
||||||||
Cash
|
$ | 161,556 | $ | 237,165 | ||||
Property and equipment - net
|
35,949 | 38,372 | ||||||
Total Assets
|
$ | 197,505 | $ | 275,537 | ||||
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
|
||||||||
Current Liabilities:
|
||||||||
Accounts payable
|
$ | 486,841 | $ | 500,211 | ||||
Accrued expenses
|
24,605 | 19,493 | ||||||
Due to related parties
|
100,510 | 761,510 | ||||||
Total Current Liabilities
|
611,956 | 1,281,214 | ||||||
Commitments and Contingencies
|
||||||||
Stockholders' Deficiency:
|
||||||||
Common stock, $.00001 par value, 1,000,000,000 shares authorized, 66,580,912 and 54,256,626 shares issued and outstanding at November 30, 2012 and August 31, 2012, respectively
|
666 | 544 | ||||||
Capital in excess of par value
|
16,777,500 | 15,716,622 | ||||||
Deficit accumulated during the development stage
|
(17,192,617 | ) | (16,722,843 | ) | ||||
Total Stockholders' Deficiency
|
(414,451 | ) | (1,005,677 | ) | ||||
Total Liabilities and Stockholders' Deficiency
|
$ | 197,505 | $ | 275,537 |
Period from
|
||||||||||||
inception
|
||||||||||||
(January 31, 2007)
|
||||||||||||
For the Three Months Ended
|
through
|
|||||||||||
November 30,
|
November 30,
|
|||||||||||
2012
|
2011
|
2012
|
||||||||||
Revenues
|
$ | - | $ | - | $ | - | ||||||
Costs and Expenses:
|
||||||||||||
General and administrative expenses
|
469,774 | 344,902 | 9,064,224 | |||||||||
Stock issued for services
|
- | - | 1,762,617 | |||||||||
Non-cash compensation
|
- | - | 3,990,692 | |||||||||
Impairment loss
|
- | - | 1,104,914 | |||||||||
Total operating expenses
|
469,774 | 344,902 | 15,922,447 | |||||||||
Loss from operations
|
(469,774 | ) | (344,902 | ) | (15,922,447 | ) | ||||||
Other Income (Expense):
|
||||||||||||
Other income (primarily from the settlement of prior liabiltities) | - | - | 538,277 | |||||||||
Interest expense
|
- | - | (212,314 | ) | ||||||||
Interest expense on amortization of note discount
|
- | - | (1,605,133 | ) | ||||||||
Gain on sale of equipment
|
- | - | 9,000 | |||||||||
Total other income (expense)
|
- | - | (1,270,170 | ) | ||||||||
Loss before provision for income taxes
|
(469,774 | ) | (344,902 | ) | (17,192,617 | ) | ||||||
Provision for income taxes
|
- | - | - | |||||||||
Net loss
|
$ | (469,774 | ) | $ | (344,902 | ) | $ | (17,192,617 | ) | |||
Net loss per share of common stock -
|
||||||||||||
Basic and diluted
|
$ | (0.01 | ) | $ | (0.01 | ) | ||||||
Weighted Average Shares Outstanding -
|
||||||||||||
Basic and diluted
|
61,372,717 | 41,536,602 |
|
Deficit
|
|||||||||||||||||||||||
|
Accumulated
|
Total
|
||||||||||||||||||||||
Capital in
|
|
During
|
Stockholders'
|
|||||||||||||||||||||
Common
|
Stock
|
Excess of
|
Subscription
|
Development
|
Equity
|
|||||||||||||||||||
Shares
|
Amount
|
Par Value
|
Receivable
|
Stage
|
(Deficiency)
|
|||||||||||||||||||
Balance - August 31, 2007
|
4,980,460 | 50 | $ | 999,950 | $ | - | $ | (602,659 | ) | $ | 397,341 | |||||||||||||
Issuance of options and warrants
|
||||||||||||||||||||||||
issued for services rendered
|
- | - | 3,686,768 | - | - | 3,686,768 | ||||||||||||||||||
Common stock issued for $10.00
|
||||||||||||||||||||||||
per share in January 2008
|
135,000 | 1 | 1,349,999 | - | - | 1,350,000 | ||||||||||||||||||
Offering costs on issuance of
|
||||||||||||||||||||||||
common stock
|
- | - | (91,401 | ) | - | - | (91,401 | ) | ||||||||||||||||
Issuance of common stock
|
||||||||||||||||||||||||
for services rendered
|
100,000 | 1 | 1,849,999 | - | - | 1,850,000 | ||||||||||||||||||
Issuance of common stock as
|
||||||||||||||||||||||||
consideration for debt financing
|
16,600 | - | 144,600 | (6,400 | ) | - | 138,200 | |||||||||||||||||
Net loss for the year ended
|
||||||||||||||||||||||||
August 31, 2008
|
- | - | - | - | (7,830,062 | ) | (7,830,062 | ) | ||||||||||||||||
Balance - August 31, 2008
|
5,232,060 | 52 | 7,939,915 | (6,400 | ) | (8,432,721 | ) | (499,154 | ) | |||||||||||||||
Common stock and warrants
|
||||||||||||||||||||||||
issued for $1.50 per unit in
|
||||||||||||||||||||||||
October 2008
|
100,000 | 1 | 149,999 | - | - | 150,000 | ||||||||||||||||||
Common stock issued for services
|
||||||||||||||||||||||||
rendered in October 2008
|
30,000 | - | 63,000 | - | - | 63,000 | ||||||||||||||||||
Common stock issued for services
|
||||||||||||||||||||||||
in November 2008
|
5,000 | - | 14,000 | - | - | 14,000 | ||||||||||||||||||
Common stock issued in
|
||||||||||||||||||||||||
consideration of debt financing -
|
||||||||||||||||||||||||
Sept - April 2009
|
71,940 | 1 | 174,999 | - | - | 175,000 | ||||||||||||||||||
Common stock issued for $2.00
|
||||||||||||||||||||||||
per share in May 2009
|
75,000 | 1 | 149,999 | - | - | 150,000 | ||||||||||||||||||
Discount on notes payable net of
|
||||||||||||||||||||||||
amortization
|
- | - | 1,593,729 | - | - | 1,593,729 | ||||||||||||||||||
Interest and stock based
|
||||||||||||||||||||||||
compensation
|
- | - | 133,141 | 6,400 | - | 139,541 | ||||||||||||||||||
Net loss for the year ended
|
||||||||||||||||||||||||
August 31, 2009
|
- | - | - | - | (2,983,660 | ) | (2,983,660 | ) | ||||||||||||||||
Balance - August 31, 2009
|
5,514,000 | 55 | 10,218,782 | - | (11,416,381 | ) | (1,197,544 | ) |
Deficit
|
||||||||||||||||||||||||
Accumulated
|
Total
|
|||||||||||||||||||||||
Capital in
|
During
|
Stockholders'
|
||||||||||||||||||||||
Common
|
Stock
|
Excess of
|
Subscription
|
Development
|
Equity
|
|||||||||||||||||||
Shares
|
Amount
|
Par Value
|
Receivable
|
Stage
|
(Deficiency)
|
|||||||||||||||||||
Issuance of common stock upon
|
||||||||||||||||||||||||
conversion of convertible debt
|
17,500,000 | 175 | 1,749,825 | 1,750,000 | ||||||||||||||||||||
Sale of common stock
|
1,000,002 | 10 | 349,990 | 350,000 | ||||||||||||||||||||
Issuance of common stock as
|
||||||||||||||||||||||||
consideration for payment of
|
||||||||||||||||||||||||
accounts payable
|
202,000 | 2 | 96,201 | 96,203 | ||||||||||||||||||||
Net loss for the year ended
|
||||||||||||||||||||||||
August 31, 2010
|
- | - | - | - | (3,089,142 | ) | (3,089,142 | ) | ||||||||||||||||
Balance - August 31, 2010
|
24,216,002 | 242 | 12,414,798 | - | (14,505,523 | ) | (2,090,483 | ) | ||||||||||||||||
Issuance of common stock upon
|
||||||||||||||||||||||||
conversion of convertible debt
|
11,090,625 | 111 | 897,232 | 897,343 | ||||||||||||||||||||
Sale of common stock
|
3,350,000 | 34 | 353,465 | 353,499 | ||||||||||||||||||||
Allocation of sale of common stock
|
||||||||||||||||||||||||
and conversion of debt to warrants
|
||||||||||||||||||||||||
issued
|
536,284 | 536,284 | ||||||||||||||||||||||
Net loss for the year ended
|
||||||||||||||||||||||||
August 31, 2011
|
- | - | - | - | (529,706 | ) | (529,706 | ) | ||||||||||||||||
Balance - August 31, 2011
|
38,656,627 | 387 | 14,201,779 | - | (15,035,229 | ) | (833,063 | ) | ||||||||||||||||
Issuance of common stock upon
|
||||||||||||||||||||||||
conversion of convertible debt
|
7,933,333 | 79 | 594,921 | 595,000 | ||||||||||||||||||||
Sale of common stock
|
7,666,666 | 78 | 855,722 | 855,800 | ||||||||||||||||||||
Allocation of sale of common
|
||||||||||||||||||||||||
stock to warrants issued
|
64,200 | 64,200 | ||||||||||||||||||||||
Net loss for the year ended
|
||||||||||||||||||||||||
August 31, 2012
|
- | - | - | - | (1,687,614 | ) | (1,687,614 | ) | ||||||||||||||||
Balance - August 31, 2012
|
54,256,626 | 544 | 15,716,622 | - | (16,722,843 | ) | (1,005,677 | ) | ||||||||||||||||
Issuance of common stock upon
|
||||||||||||||||||||||||
conversion of convertible debt
|
6,610,000 | 65 | 660,935 | 661,000 | ||||||||||||||||||||
Sale of common stock
|
5,714,286 | 57 | 399,943 | 400,000 | ||||||||||||||||||||
Net loss for the three months ended
|
||||||||||||||||||||||||
November 30, 2012
|
- | - | - | - | (469,774 | ) | (469,774 | ) | ||||||||||||||||
Balance - November 30, 2012
|
66,580,912 | $ | 666 | $ | 16,777,500 | $ | - | $ | (17,192,617 | ) | $ | (414,451 | ) |
Period from
|
||||||||||||
inception
|
||||||||||||
(January 31, 2007)
|
||||||||||||
For the Three Months Ended
|
through
|
|||||||||||
November 30,
|
November 30,
|
|||||||||||
2012
|
2011
|
2012
|
||||||||||
Cash Flows From Operating Activities:
|
||||||||||||
Net loss
|
$ | (469,774 | ) | $ | (344,902 | ) | $ | (17,192,617 | ) | |||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||||||
Debt financing costs
|
- | - | 1,906,933 | |||||||||
Depreciation expense
|
5,538 | 4,631 | 176,858 | |||||||||
Impairment loss
|
- | - | 1,104,917 | |||||||||
Options, warrants and common stock issued for services rendered
|
- | - | 5,753,309 | |||||||||
Gain on settlement of prior liabilties
|
- | - | (508,457 | ) | ||||||||
Gain on sale of equipment
|
- | - | (9,000 | ) | ||||||||
Changes in operating assets and liabilities:
|
||||||||||||
Accounts payable
|
(13,370 | ) | (10,398 | ) | 1,095,999 | |||||||
Accrued expense
|
5,112 | 3,274 | 94,730 | |||||||||
Net cash used in operating activities
|
(472,494 | ) | (347,395 | ) | (7,577,328 | ) | ||||||
Cash Flows From Investing Activities:
|
||||||||||||
Purchase of property and equipment
|
(3,115 | ) | (19,953 | ) | (250,505 | ) | ||||||
Software development
|
- | - | (1,109,417 | ) | ||||||||
Net cash used in investing activities
|
(3,115 | ) | (19,953 | ) | (1,359,922 | ) | ||||||
Cash Flows From Financing Activities:
|
||||||||||||
Proceeds from related parties
|
- | 265,000 | 2,618,510 | |||||||||
Proceeds from sale of equipment
|
- | - | 46,697 | |||||||||
Proceeds from issuance of notes payable
|
- | - | 2,600,000 | |||||||||
Repayment of notes payable
|
- | - | (500,000 | ) | ||||||||
Proceeds from issuance of common stock and warrants, net of offering costs
|
400,000 | 100,000 | 4,333,599 | |||||||||
Net cash provided by financing acitivities
|
400,000 | 365,000 | 9,098,806 | |||||||||
Net increase (decrease) in cash
|
(75,609 | ) | (2,348 | ) | 161,556 | |||||||
Cash beginning of period
|
237,165 | 33,648 | - | |||||||||
Cash end of period
|
$ | 161,556 | $ | 31,300 | $ | 161,556 | ||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
|
||||||||||||
INFORMATION:
|
||||||||||||
Cash paid during the period for:
|
||||||||||||
Interest
|
$ | - | $ | - | ||||||||
Income taxes
|
- | - | ||||||||||
Common stock and warrants issued for payment of accounts payable
|
$ | - | $ | - | $ | - | ||||||
Common stock and warrants issued upon conversion of covertible debt
|
||||||||||||
and related party debt
|
$ | 661,000 | $ | 595,000 | $ | 4,168,000 |
Fair Value Measurements Using
|
||||||||||||
|
||||||||||||
Quoted Prices
|
Significant Other
|
Significant Other
|
||||||||||
in
Active Market
|
Observable Inputs
|
Unobservable Inputs
|
||||||||||
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||
November 30, 2012
|
||||||||||||
Cash and cash equivalents
|
$ | 161,556 | $ | - | $ | - | ||||||
Total
|
$ | 161,556 | $ | - | $ | - | ||||||
August 31, 2012
|
||||||||||||
Cash and cash equivalents
|
$ | 237,165 | $ | - | $ | - | ||||||
Total
|
$ | 237,165 | $ | - | $ | - |
November 30, 2012
|
August 31,
2012
|
|||||||
Equipment
|
$ | 68,003 | $ | 64,888 | ||||
Accumulated depreciation
|
32,054 | 26,516 | ||||||
$ | 35,949 | $ | 38,372 |
During the three months ended November 30, 2012, Richard Genovese, a Director of the Company ("Genovese" ), converted $661,000 of debt owed to him into 6,610,000 common shares at a conversion price per share of $0.10.
|
Shares
|
Weighted Average
Exercise Price
|
|||||||
Outstanding, September 1, 2012
|
-0-
|
$ |
-0-
|
|||||
Granted
|
-
|
-
|
||||||
Expired/Cancelled
|
-
|
-
|
||||||
Exercised
|
-
|
-
|
||||||
Outstanding, period ended November 30, 2012
|
-0-
|
$ |
-0-
|
|||||
Exercisable at November 30, 2012
|
-0-
|
$ |
-0-
|
Warrants
|
Weighted Average Exercise Price
|
|||||
Outstanding, September 1, 2012
|
32,440,625
|
$ |
0.18
|
|||
Granted
|
-0-
|
$ |
-0-
|
|||
Expired/Cancelled
|
-0-
|
$ |
-0-
|
|||
Exercised
|
||||||
Outstanding, period ended November 30, 2012
|
32,440,625
|
$ |
0.18
|
|||
Exercisable, period ended November 30, 2012
|
32,440,625
|
$ |
0.18
|
Warrants Outstanding
|
Warrants Exercisable
|
|||||||||||||||||||
Year
|
Exercise
Price
|
Number of
Warrants Outstanding
|
Weighted Average Contractual Life (Years)
|
Number Exercisable
|
Weighted Average Exercise Price
|
|||||||||||||||
2008
|
$ | 2.00 | 100,000 | 0.40 | 100,000 | 2.00 | ||||||||||||||
2009
|
0.15 | *10,000,000 | 0.17 | 10,000,000 | 0.15 | |||||||||||||||
2009
|
0.15 | *2,500,000 | 0.23 | 2,500,000 | 0.15 | |||||||||||||||
2009
|
0.15 | *500,000 | 0.25 | 500,000 | 0.15 | |||||||||||||||
2009
|
0.15 | *1,700,000 | 0.39 | 1,700,000 | 0.15 | |||||||||||||||
2009
|
0.15 | *150,000 | 0.41 | 150,000 | 0.15 | |||||||||||||||
2009
|
0.15 | *50,000 | 0.43 | 50,000 | 0.15 | |||||||||||||||
2009
|
0.15 | *50,000 | 0.50 | 50,000 | 0.15 | |||||||||||||||
2009
|
0.15 | *500,000 | 0.72 | 500,000 | 0.15 | |||||||||||||||
2009
|
0.15 | *2,050,000 | 0.72 | 2,050,000 | 0.15 | |||||||||||||||
2011
|
0.30 | 6,600,625 | 3.00 | 6,600,625 | 0.30 | |||||||||||||||
2011
|
0.30 | 500,000 | 3.10 | 500,000 | 0.30 | |||||||||||||||
2011
|
0.10 | 6,840,000 | 3.50 | 6,840,000 | 0.10 | |||||||||||||||
2011
|
0.10 | 500,000 | 3.61 | 500,000 | 0.10 | |||||||||||||||
2012
|
0.25 | 400,000 | 3.96 | 400,000 | 0.25 | |||||||||||||||
Total
|
32,440,625 | 32,440,625 |
31
|
Certification of Chief Executive and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. *
|
|||
32
|
Certification of Chief Executive and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350. **
|
*
|
Filed herewith.
|
|||||||
**
|
Furnished herewith.
|
SEC Ref. No.
|
Title of Document
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
XBRL Taxonomy Calculation Linkbase Document
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
XBRL Taxonomy Label Linkbase Document
|
101.PRE
|
XBRL Taxonomy Presentation Linkbase Document
|
LYYNKS INC.
(Registrant)
|
||||
Date: January 14, 2013
|
By: /s/ ROBERT ROSNER
Robert Rosner
|
|||
President, Chief Executive and Chief Financial Officer
|
1.
|
I have reviewed this Report on Form 10-Q of LYYNKS INC.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
I have disclosed, based on my most recent evaluation of internal control over financial reporting to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
By:
|
/s/ ROBERT ROSNER
|
||
Date: January 14, 2013
|
Robert Rosner
|
||
Chief Executive Officer and Chief Financial Officer
|
(1)
|
the 10-Q Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
the information contained in the 10-Q Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: January 14, 2013
|
By: /s/ ROBERT ROSNER
|
|
Robert Rosner
|
||
Chief Executive Officer and Chief Financial Officer
|
OPTIONS AND WARRANTS (Details 2) (Warrant [Member], USD $)
|
3 Months Ended | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2012
|
Nov. 30, 2011
|
Nov. 30, 2010
|
Aug. 31, 2009
|
Aug. 31, 2008
|
Nov. 30, 2012
2008 [Member]
Exercise Price Range 2.00 [Member]
|
Nov. 30, 2012
2009 [Member]
Exercise Price Range 0.15 [Member]
|
Nov. 30, 2012
2009 [Member]
ExercisePriceRangeTwoMember
|
Nov. 30, 2012
2009 [Member]
ExercisePriceRangeThreeMember
|
Nov. 30, 2012
2009 [Member]
ExercisePriceRangeFourMember
|
Nov. 30, 2012
2009 [Member]
ExercisePriceRangeFiveMember
|
Nov. 30, 2012
2009 [Member]
ExercisePriceRangeSixMember
|
Nov. 30, 2012
2009 [Member]
ExercisePriceRangeSevenMember
|
Nov. 30, 2012
2009 [Member]
ExercisePriceRangeEightMember
|
Nov. 30, 2012
2009 [Member]
ExercisePriceRangeNineMember
|
Nov. 30, 2012
2011 [Member]
Exercise Price Range 0.30 [Member]
|
Nov. 30, 2012
2011 [Member]
ExercisePriceRangeElevenMember
|
Nov. 30, 2012
2011 [Member]
Exercise Price Range 0.10 [Member]
|
Nov. 30, 2012
2011 [Member]
ExercisePriceRangeThirteenMember
|
Nov. 30, 2012
2012 [Member]
Exercise Price Range 0.25 [Member]
|
|
Shares outstanding | 32,440,625 | 33,040,627 | 18,637,502 | 17,637,500 | 100,000 | 100,000 | 10,000,000 | 2,500,000 | 500,000 | 1,700,000 | 150,000 | 50,000 | 50,000 | 500,000 | 2,050,000 | 6,600,625 | 500,000 | 6,840,000 | 500,000 | 400,000 |
Shares outstanding, weighted average contractual life (years) | 8 months 24 days | 5 months 1 day | 5 months 23 days | 6 months | 7 months 20 days | 7 months 28 days | 8 months 5 days | 8 months 12 days | 11 months 19 days | 11 months 19 days | 3 years 3 months | 3 years 4 months 6 days | 3 years 9 months | 3 years 10 months 10 days | 4 years 2 months 16 days | |||||
Shares exercisable | 32,440,625 | 100,000 | 10,000,000 | 2,500,000 | 500,000 | 1,700,000 | 150,000 | 50,000 | 50,000 | 500,000 | 2,050,000 | 6,600,625 | 500,000 | 6,840,000 | 500,000 | 400,000 | ||||
Shares exercisable, weighted average exercise price | $ 0.18 | $ 2.00 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.30 | $ 0.30 | $ 0.10 | $ 0.10 | $ 0.25 |
FAIR VALUE MEASUREMENTS (Details) (USD $)
|
Nov. 30, 2012
|
Aug. 31, 2012
|
---|---|---|
Quoted Prices in Active Market (Level 1) [member]
|
||
Cash and cash equivalents | $ 161,556 | $ 237,165 |
Total | 161,556 | 237,165 |
Significant Other Observable Inputs (Level 2) [Member]
|
||
Cash and cash equivalents | ||
Total | ||
Significant Other Unobservable Inputs (Level 3) [Member]
|
||
Cash and cash equivalents | ||
Total |
SUBSEQUENT EVENTS (Details Narrative) (USD $)
|
Dec. 24, 2012
|
---|---|
Promissory Note | |
Laon amount | $ 75,000 |
Repayment date | Dec. 23, 2013 |
SETTLEMENT OF PRIOR LIABILITIES
|
3 Months Ended |
---|---|
Nov. 30, 2012
|
|
Notes to Financial Statements | |
NOTE 3 - SETTLEMENT OF PRIOR LIABILITIES | We have settled certain payables to reflect the acceptance by these creditors of lesser amounts. Accordingly, amounts accrued with respect to these account holders have been reduced to $-0- from $538,457, and we have recognized other income in that amount in the consolidated statement of operations for the period from inception (January 31, 2007) through November 30, 2012. No settlements were recognized for the three months ended November 30, 2012 and 2011. |