10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q /A

x QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended February 28, 2013

¨ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________

Commission File Number: 000-53446

INFINITY AUGMENTED REALITY, INC.

(Exact name of registrant as specified in its charter)

Nevada	71-1013330
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
45 Broadway, 6th Floor New York, New York	10006
(Address of principal executive offices)	(Zip Code)

(212) 201-4070

(Registrant's telephone number, including area code)

ABSOLUTE LIFE SOLUTIONS, INC.

(Former name or former address, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x. No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer," "non-accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨ (Do not check if a smaller reporting company)	Smaller reporting company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨. No x

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date. 92,189,279 shares of common stock as of April 22, 2013.

Explanatory Note –

The purpose of this Amendment No. 1 to Infinity Augmented Reality, Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended February 28, 2013, filed with the Securities and Exchange Commission on April 22, 2013 (the “Form 10-Q”), is solely to furnish Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T.  Exhibit 101 to this report provides the consolidated financial statements and related notes from the Form 10-Q formatted in XBRL (eXtensible Business Reporting Language).

No other changes have been made to the Form 10-Q. This Amendment No. 1 to the Form 10-Q speaks as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q.

Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

Item 6. Exhibits.

Exhibit Number	Description
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. *
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. *
32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act. *
32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act . *
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

*           These exhibits were previously included or incorporated by reference in Infinity Augmented Reality, Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended February 28, 2013, filed with the Securities and Exchange Commission on April 22, 2013.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Form 10-Q/A to be signed on its behalf by the undersigned, thereunto duly authorized.

INFINITY AUGMENTED REALITY, INC.
April 26, 2013	/s/ Joshua Yifat
	Joshua Yifat Treasurer and Chief Financial Officer (Principal Financial Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Capacity in which signed	Date
/s/ Avrohom Oratz
Avrohom Oratz	President and Chief Executive Officer (Principal Executive Officer )	April 26, 2013

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INCOME TAXES (Details Textual) (USD $)	3 Months Ended		6 Months Ended
	Feb. 28, 2013	Feb. 29, 2012	Feb. 28, 2013	Feb. 29, 2012
United States statutory rate			35.00%
State income taxes			22.00%
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense	$ 75,000	$ 0	$ 75,000	$ 0

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DISCONTINUED OPERATIONS

6 Months Ended

Feb. 28, 2013

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

3. DISCONTINUED OPERATIONS

Effective November 15, 2012, the Company reached an agreement with the agent of the Lenders regarding the satisfaction of the outstanding balance of the Loans, under the terms of a Loan Satisfaction Agreement. Such agreement resulted in the disposition of all of the life settlement contracts that were held by the Company to the Lender or an affiliate of the Lender. All of the operations related to the Company’s life settlements business are reported as discontinued operations in the condensed consolidated financial statements. The prior period operations related to this business have also been reported as discontinued operations retrospectively for all periods presented. The assets and liabilities related to the Company’s life settlements business are reported as assets and liabilities of discontinued operations in the condensed consolidated balance sheets as of February 28, 2013. The Company presented the prior year assets and liabilities related to the Company’s life settlements business as discontinued operations to provide comparability between the periods presented.

Discontinued operations on the condensed consolidated statement of operations for the three months and six months ended February 28, 2013 and February 29, 2012 are as follows:

	Three months ended February 28, 2013			Three months ended February 29, 2012			Six months ended February 28, 2013			Six months ended February 29, 2012
Sales, general and administrative expenses	$	(75,000	)	$	(509,630	)	$	(204,200	)	$	(884,773	)
Other income (expense)
Realized gain on life settlement contracts held under investment method		-			-			-			319,843
Realized loss on extinguishment of debt		-			-			(8,438,584	)		-
Change in fair value of life settlement contracts net of premiums paid		-			(1,349,234	)		2,055,438			(9,229,160	)
Interest expense		-			-			(1,610,571	)		-
Loss from discontinued operations before income tax		(75,000	)		(1,858,864	)		(8,197,917	)		(9,794,090	)
Income tax benefit		21,202			272,581			3,879,477			3,819,414
Net loss from discontinued operations	$	(53,798	)	$	(1,586,283	)	$	(4,318,440	)	$	(5,974,676	)

Assets and liabilities of discontinued operations for the Company’s life settlements business on the condensed consolidated balance sheets consist of the following:

	February 28, 2013 (unaudited)		August 31, 2012
ASSETS
Current Assets
Cash and cash equivalents	$	-	$	228,165
Investment in life settlement contracts at investment method		-		4,334,012
Total current assets of discontinued operations		-		4,562,177
Investment in life settlement contracts at fair value		-		64,667,124
Deferred income taxes		145,781		-
Total noncurrent assets of discontinued operations	$	145,781	$	64,667,124
LIABILITIES
Current Liabilities
Interest payable	$	-	$	626,710
Loans payable		-		59,450,000
Income and other taxes payable		775,000		-
Total current liabilities of discontinued operations		775,000		60,076,710
Deferred income taxes		-		4,243,044
Total long-term liabilities of discontinued operations	$	-	$	4,243,044

During the six months ended February 28, 2013, a life settlement contract matured resulting in cash proceeds of $10,000,000, these proceeds were used to satisfy the Company’s outstanding obligations of $9,378,807 in discontinued operations, including (i) interest on Term Loan of $2,123,281, (ii) $5,971,000 outstanding under the Revolving Loan, plus $114,000 in interest under the Revolving Loan, or a total of $6,085,000 due under the Revolving Loan and (iii) $1,170,526 premiums payable on behalf of ALS Capital Ventures LLC.

As of February 28, 2013, the Company had a deferred income tax asset of $145,781 from an NOL from discontinued operations and income tax payable of $775,000, which includes $75,000 for interest and penalties, as a result of a realized gain from maturity of a life settlement contract which could not be offset by the capital loss generated by the disposition of life settlement contracts.

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SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Feb. 28, 2013

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies [Text Block]

2. SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements as of February 28, 2013 and February 29, 2012 and for the three months and six months then ended and for the period from November 15, 2012 to February 28, 2013 have been prepared in accordance with the accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 8 of Regulation S-X of the Securities and Exchange Commission (“SEC”) and on the same basis as the annual audited financial statements. The unaudited condensed consolidated financial statements include the accounts of the Company and our wholly-owned subsidiary. All significant intercompany accounts and transactions are eliminated in the consolidation process. The unaudited Balance Sheet as of February 28, 2013, Statements of Operations for the three months and six months ended February 28, 2013 and February 29, 2012 and for the period from November 15, 2012 to February 28, 2013, and Statements of Cash Flows for the six months ended February 28, 2013 and February 29, 2012 and for the period from November 15, 2012 to February 28, 2013, are unaudited, but include all adjustments, consisting only of normal recurring adjustments, which the Company considers necessary for a fair presentation of the financial position, operating results and cash flows for the period presented. The results for the three months and six months ended February 28, 2013 and for the period from November 15, 2012 to February 28, 2013 are not necessarily indicative of results to be expected for the year ending August 31, 2013 or for any future interim period. In addition, the balance sheet data at August 31, 2012 was derived from the audited financial statements but does not include all disclosures required by GAAP. The accompanying financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on January 3, 2013.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company's estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. The most significant estimates with regard to these financial statements relate to deferred income tax amounts and rates and timing of the reversal of income tax differences.

Development Stage Company

Effective November 15, 2012, the Company is considered a development stage company, having no operating revenues during the period from November 15, 2012 (“Inception”) to February 28, 2013, as defined by ASC 915-205, Development-Stage Entities. ASC 915-205 requires companies to report their operations, shareholders equity and cash flows upon entering the development stage through the date that revenues are generated. From November 15, 2012 through February 28, 2013, all operating expenses of the Company related to its augmented reality business and is included in the Condensed Consolidated Statements of Operations. The Company had operating expenses of $179,279 and $143,753 respectively for the period from September 1, 2012 to November 15, 2012 and the period from June 1, 2012 to August 31, 2012 respectively, relating to its augmented reality business.

Cash and Cash Equivalents

The Company considers all short term investments with an original maturity of three months or less to be cash equivalents. The Company maintains cash balances that may be uninsured or in deposit accounts that exceed Federal Deposit Insurance Corporation limits. The Company maintains its cash deposits with major financial institutions.

Reclassifications

During the six months ended February 28, 2013, the Company disposed of all its life settlement contracts. As of February 28, 2013, all of the operations related to the life settlement business, as well as any resulting gain or loss recognized from the disposal, have been reported as discontinued operations in the condensed consolidated financial statements. The Company has also reported the prior period operations related to this business as discontinued operations retrospectively for all periods presented. Additionally, the assets and liabilities related to the life settlements business have been classified as discontinued operations in the consolidated balance sheets for all periods presented. See Note 3 - Discontinued Operations for more information.

Financial Instruments

The fair value of certain of the Company's financial instruments, consisting of cash, accounts payable and accrued expenses are estimated to be equal to their carrying value due to the short-term nature of these instruments. It is management's opinion that the Company is not exposed to significant interest, currency and credit risks arising from these financial instruments.

Deferred Rent Liability

The Company’s operating lease provides for minimum annual payments that adjust over the life of the lease. The aggregate minimum annual payments are expensed on the straight-line basis over the minimum lease term. The Company recognizes a deferred rent liability for rent escalations when the amount of straight-line rent exceeds the lease payments, and reduces the deferred rent liability when the lease payments exceed the straight-line rent expense.

Software Development Costs

The Company applies the principles of ASC 985-20, Software- Costs of Software to Be Sold, Leased, or Marketed, which requires that software development costs incurred in conjunction with product development be charged to research and development expense until technological feasibility is established. Thereafter, until the product is released for sale, software development costs must be capitalized and reported at the lower of unamortized cost or net realizable value of the related product. The Company has adopted the "tested working model" approach to establishing technological feasibility for its products. Under this approach, a product in development is not considered to have passed the technological feasibility milestone until the Company has produced a model of the product that contains essentially all the functionality and features of the final product and have tested the model to ensure that it works as expected. The Company has expensed all software development costs when incurred since they have not reached technological feasibility.

Income Taxes

Deferred income taxes are provided for tax effects of temporary differences between the tax basis of asset and liabilities and their reported amounts in the financial statements. The Company uses the liability method to account for income taxes, which requires deferred taxes to be recorded at the statutory rate expected to be in effect when the taxes are paid. Valuation allowances are provided for a deferred tax asset when it is more likely than not that such asset will not be realized.

Management evaluates tax positions taken or expected to be taken in a tax return. The evaluation of a tax position includes a determination of whether a tax position should be recognized in the financial statements, and such a position should only be recognized if the Company determines that it is more likely than not that the tax position will be sustained upon examination by the tax authorities, based upon the technical merits of the position. For those tax positions that should be recognized, the measurement of a tax position is determined as being the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement.

The Company’s policy for recording interest and penalties associated with audits is to record such expense as a component of income tax expense.

Earnings (Loss) per Share

Basic earnings (loss) per share is calculated using the weighted average number of shares of common stock outstanding during the period. Included in basic loss per share calculations are the effects of 6,000,000 warrants exercisable at $.01. Diluted earnings per share reflect the potential dilution that could occur if potentially dilutive securities were exercised or converted to common stock. The dilutive effect of options and warrants and their equivalent is computed by application of the treasury stock method and the effect of convertible securities by the “if converted” method. There are no other potential common shares at February 28, 2013. For the three months and six months ended February 29, 2012, 26,650,000 and 27,092,500 warrants with an exercise price of $2.00 and $4.00 respectively, and 53,300 Series A and Series B preferred shares, convertible into 53,300,000 common shares are not included in diluted earnings per share since their effect would be anti-dilutive.

Stock-Based Compensation

The Company records stock-based compensation expense in accordance with ASC 718, Compensation - Stock Compensation. The Company accounts for stock based compensation arrangements using a fair value method and records such expense on a straight-line basis over the estimated life of the instrument.

Recent Accounting Pronouncements

Other pronouncements issued by the FASB or other authoritative accounting standards groups with future effective dates are either not applicable or are not expected to be significant to the condensed consolidated financial statements of the Company.

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Feb. 28, 2013	Aug. 31, 2012
ASSETS
Cash and cash equivalents	$ 195,947	$ 4,885
Prepaid expenses	8,119	15,192
Current assets of discontinued operations	0	4,562,177
Total current assets	204,066	4,582,254
Equipment, net	54,152	66,129
Security deposit	56,688	56,688
Noncurrent assets of discontinued operations	145,781	64,667,124
TOTAL ASSETS	460,687	69,372,195
LIABILITIES
Accounts payable and accrued expenses	449,872	441,297
Current liabilities of discontinued operations	775,000	60,076,710
Total current liabilities	1,224,872	60,518,007
Deferred rent	67,905	49,335
Long-term liabilities of discontinued operations	0	4,243,044
TOTAL LIABILITES	1,292,777	64,810,386
STOCKHOLDERS' (DEFICIT) EQUITY
Preferred stock,value	0	0
Common stock ($0.00001 par value; 500,000,000 authorized; 92,544,747 issued and 92,189,279 outstanding) (August 31, 2012 - 92,544,747 issued and 92,229,599 outstanding)	925	925
Additional paid in capital	51,490,401	51,486,890
Treasury stock, at cost (355,468 shares of common stock) (August 31, 2012- 315,148 shares of common stock)	(49,766)	(44,121)
Accumulated deficit	(52,273,650)	(46,881,885)
Total Stockholders' (Deficit) Equity	(832,090)	4,561,809
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY	460,687	69,372,195
Series A Convertible Preferred Stock [Member]
STOCKHOLDERS' (DEFICIT) EQUITY
Preferred stock,value	0	0
Series B Convertible Preferred Stock [Member]
STOCKHOLDERS' (DEFICIT) EQUITY
Preferred stock,value	$ 0	$ 0

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended	6 Months Ended
	Feb. 28, 2013	Feb. 28, 2013	Feb. 29, 2012
OPERATING ACTIVITIES
Net loss	$ (782,031)	$ (5,391,765)	$ (5,974,676)
Loss from discontinued operations	0	4,318,440	5,974,676
Adjustments to reconcile net loss to net cash (used in) provided by operations
Stock-based compensation	3,511	3,511	0
Stock forfeited by stockholders to settle payment of withholding tax on behalf of such stockholders	(5,645)	(5,645)	0
Depreciation	6,987	11,977	11,976
Deferred rent	4,267	18,570	3,854
Deferred income taxes	78,637	190,652	0
Changes in operating assets and liabilities
Prepaid expenses	10,423	7,073	20,629
Accounts payable and accrued expenses	98,003	8,575	147,891
Net cash (used in) provided by operating activities- continuing operations	(585,848)	(838,612)	184,350
Net cash (used in) provided by operating activities- discontinued operations	5,858,675	(6,655,209)	(3,792,462)
Net cash (used in) provided by operating activities	5,272,827	(7,493,821)	(3,608,112)
INVESTING ACTIVITIES
Net cash provided by investing activities- continuing operations	0	0	0
Net cash provided by investing activities- discontinued operations	0	9,756,718	1,243,886
Net cash provided by investing activities	0	9,756,718	1,243,886
FINANCING ACTIVITIES
Net cash provided by financing activities- continuing operations	0	0	0
Net cash (used in) provided by financing activities- discontinued operations	(5,135,000)	(2,300,000)	2,500,000
Net cash (used in) provided by financing activities	(5,135,000)	(2,300,000)	2,500,000
Change in cash and cash equivalents	137,827	(37,103)	135,774
Cash and cash equivalents, beginning	58,120	233,050	1,917,896
Cash and cash equivalents, ending	195,947	195,947	2,053,670
Less cash and cash equivalents of discontinued operations, ending			2,053,670
Cash and cash equivalents of continuing operations, ending	$ 195,947	$ 195,947

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COMMON STOCK, WARRANTS AND OPTIONS (Details 1)	6 Months Ended
	Feb. 28, 2013	Feb. 29, 2012
Risk-free interest rate	0.77%	0.00%
Expected life	5 years	0 years
Volatility	83.00%	0.00%
Dividend yield	0.00%	0.00%

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INCOME TAXES (Details) (USD $)	3 Months Ended			6 Months Ended
	Feb. 28, 2013	Feb. 28, 2013	Feb. 29, 2012	Feb. 28, 2013	Feb. 29, 2012
Current tax expense				$ 0	$ 19,426
Deferred tax expense (benefit)		78,637		190,652	0
Total income tax expense (benefit)	$ 27,783	$ 78,637	$ 0	$ 190,652	$ 0

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NATURE AND CONTINUANCE OF OPERATIONS

6 Months Ended

Feb. 28, 2013

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Nature of Operations [Text Block]

1. NATURE AND CONTINUANCE OF OPERATIONS

Infinity Augmented Reality, Inc. (formerly known as Absolute Life Solutions, Inc.) (the “Company” or “IAR” or “Infinity”) was originally incorporated as Shimmer Gold, Inc. in the State of Nevada on September 7, 2006 and was in the business of the acquisition and exploration of mineral resources.

On May 21, 2010, the Company changed its name from Shimmer Gold, Inc. to Absolute Life Solutions, Inc. During the fiscal year ended August 31, 2010, the Company commenced operations as a specialty financial services company engaged in the business of purchasing life settlement contracts for long-term investment purposes.

Effective November 15, 2012, the Company is no longer engaged in its prior primary activity as a specialty financial services company primarily engaged in the purchase of life settlement contracts. As a result of the foregoing, the Company is currently classified as a development stage company. All of the operations related to the Company’s life settlements business are reported as discontinued operations in the condensed consolidated financial statements. As discussed in Note 3, the prior period operations related to this business have also been reclassified as discontinued operations retrospectively for all periods presented.

During the year ended August 31, 2012, the Company formed a wholly-owned subsidiary Infinity Augmented Reality, LLC (“IAR Subsidiary”) and commenced activities to enable it to be actively engaged in the development of software applications which will utilize augmented reality. Effective March 7, 2013, the Company changed its name from Absolute Life Solutions, Inc. to Infinity Augmented Reality, Inc. On that same date, the IAR Subsidiary was merged into the Company. The Company is actively engaged in the development of software applications which will utilize augmented reality. The Company intends to develop a comprehensive augmented reality platform for consumers. The Company’s objective is to establish itself firmly as a preeminent source for state-of-the-art augmented reality experiences, forging a strong association, early on, between the Infinity brand and the burgeoning medium.

The continued existence of the Company is dependent upon its ability to generate profit from its augmented reality business and to meet its obligations as they come due. If additional cash is needed, the Company intends to finance the future capital required for continued operations from a combination of debt and equity markets. However, there is no assurance that (a) traditional debt and equity markets may be accessible as required, or if so, on acceptable terms and, or (b) the demand for and selling prices of the Company’s augmented reality software applications, may not be sufficient to meet cash flow requirements. The outcome of these matters cannot be predicted with certainty and therefore the Company may not be able to continue or expand operations as planned. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These unaudited condensed consolidated financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern.

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CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $)	6 Months Ended	12 Months Ended
	Feb. 28, 2013	Aug. 31, 2012
Preferred stock, par value (in dollars per share)	0.00001	0.00001
Preferred stock, shares authorized	100,000,000	100,000,000
Common stock, par value (in dollars per share)	0.00001	0.00001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	92,544,747	92,544,747
Common stock, shares outstanding	92,189,279	92,229,599
Treasury stock	355,468	315,148
Series A Convertible Preferred Stock [Member]
Preferred stock, shares designated	60,000	60,000
Preferred stock, dividend rate, percentage	12.50%	12.50%
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series B Convertible Preferred Stock [Member]
Preferred stock, shares designated	25,000	25,000
Preferred stock, dividend rate, percentage	12.50%	12.50%
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

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INCOME TAXES (Tables)

6 Months Ended

Feb. 28, 2013

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Income tax expense (benefit) consists of the following components at February 28, 2013 and February 29, 2012:

	2013		2012
Current tax expense	$	-	$	19,426
Deferred tax expense (benefit)		190,652		(3,838,840	)
Total income tax expense (benefit)	$	190,652	$	(3,819,414	)

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DOCUMENT AND ENTITY INFORMATION	6 Months Ended
	Feb. 28, 2013	Apr. 14, 2013
Entity Registrant Name	Infinity Augmented Reality, Inc.
Entity Central Index Key	0001421538
Current Fiscal Year End Date	--08-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	also
Entity Common Stock, Shares Outstanding		92,189,279
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Feb. 28, 2013
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2013

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SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $)	3 Months Ended			6 Months Ended
	Nov. 14, 2012	Aug. 31, 2012	Feb. 29, 2012	Feb. 28, 2013	Feb. 29, 2012
Operating Expenses	$ 179,279	$ 143,753
Warrants Exercisable Effects On Earnings Per Share				6,000,000
Warrants Exercisable Per Share Effects On Earnings Per Share				$ 0.01
Debt Conversion, Converted Instrument, Warrants or Options Issued			26,650,000		27,092,500
Investment Warrants, Exercise Price			$ 2.00		$ 4.00
Convertible Preferred Stock, Shares Issued upon Conversion			53,300,000		53,300,000
Series Preferred Stock [Member]
Convertible Preferred Stock, Shares Issued upon Conversion			53,300		53,300
Series B Preferred Stock [Member]
Convertible Preferred Stock, Shares Issued upon Conversion			53,300		53,300

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended			6 Months Ended
	Feb. 28, 2013	Feb. 28, 2013	Feb. 29, 2012	Feb. 28, 2013	Feb. 29, 2012
Sales, general and administrative expenses	$ (622,003)	$ (703,394)	$ 0	$ (882,673)	$ 0
Loss from continuing operations before income tax	(622,003)	(703,394)	0	(882,673)	0
Income tax provision	(27,783)	(78,637)	0	(190,652)	0
Loss from continuing operations	(649,786)	(782,031)	0	(1,073,325)	0
Loss from discontinued operations (including loss on disposal of life settlement contracts of $8,438,584 for the three months and six months ended February 28, 2013), net of tax	(53,798)	0	(1,586,283)	(4,318,440)	(5,974,676)
Net loss	(703,584)	(782,031)	(1,586,283)	(5,391,765)	(5,974,676)
Deemed dividend on issuance of Series A and Series B Preferred Stock	0	0	(932,643)	0	(932,643)
Dividend on Convertible Preferred Stock	0	0	(3,233,104)	0	(3,233,104)
Net loss applicable to common shareholders	$ (703,584)	$ (782,031)	$ (5,752,030)	$ (5,391,765)	$ (10,140,423)
Basic and diluted loss per common share
Continuing operations (in dollars per share)	$ (0.01)		$ 0	$ (0.01)	$ 0
Discontinued operations (in dollars per share)	$ 0		$ (0.06)	$ (0.04)	$ (0.11)
Net loss per common share (in dollars per share)	$ (0.01)		$ (0.06)	$ (0.05)	$ (0.11)
Basic weighted average shares outstanding (in shares)	98,226,463		93,500,031	98,228,040	92,462,314
Diluted weighted average shares outstanding (in shares)	98,226,463		93,500,031	98,228,040	92,462,314

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INCOME TAXES

6 Months Ended

Feb. 28, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

6. INCOME TAXES

Income tax expense (benefit) consists of the following components at February 28, 2013 and February 29, 2012:

	2013		2012
Current tax expense	$	-	$	19,426
Deferred tax expense (benefit)		190,652		(3,838,840	)
Total income tax expense (benefit)	$	190,652	$	(3,819,414	)

The Company calculates its interim tax provision in accordance with the provisions of ASC 740-270, Income Taxes; Interim Reporting. For interim periods, the Company estimates its annual effective income tax rate and applies the estimated rate to the year-to-date income or loss before income taxes. The Company also computes the tax provision or benefit related to items reported separately and recognizes the items net of their related tax effect in the interim periods in which they occur. The Company also recognizes the effect of changes in enacted tax laws or rates in the interim periods in which the changes occur.

In computing the annual estimated effective tax rate the Company makes certain estimates and judgments, such as estimated annual taxable income or loss, the nature and timing of permanent and temporary differences between taxable income for financial reporting and tax reporting, and the recoverability of deferred tax assets. These estimates and assumptions may change as new events occur, additional information is obtained, or as the tax environment changes. The Company is in the development stage and has no saleable product and no income, therefore all operating expenses are capitalized for tax purposes. The difference between the statutory rate of 35% and the effective rate of 22% is primarily attributable to the increase in valuation allowance.

As of February 28, 2013, the Company has filed income tax returns through the fiscal 2011 tax year. The Company is required to file income tax returns in the United States (federal) and in New York State and City. Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company’s financial statements. The evaluation was performed for the August 31, 2008 – August 31, 2012 tax years, which remain subject to examination. The Company believes that its income tax positions and deductions would be sustained on audit and does not anticipate any adjustments that would result in material changes to its financial position.

The Company’s policy for recording interest and penalties associated with audits is to record such expense as a component of income tax expense. There was $75,000 accrued for penalties and interest during the three months and six months ended February 28, 2013. There was no significant amounts accrued for penalties or interest during the three months and six months ended February 29, 2012. Management is currently unaware of any issues under review that could result in significant payments, accruals or material deviations from its position.

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COMMON STOCK, WARRANTS AND OPTIONS

6 Months Ended

Feb. 28, 2013

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

5. COMMON STOCK, WARRANTS AND OPTIONS

Common Stock

The Company did not issue additional common stock during the quarter ended February 28, 2013.

During the quarter ended February 28, 2013, the Company received 40,320 shares of common stock from the Company’s CFO as reimbursement for $5,645 of taxes paid on their behalf. Those shares were returned to the Company’s treasury.

Warrants

Warrant transactions are summarized as follows:

	Number of warrants		Weighted average exercise price		Weighted average life remaining (in years)
Balance as at August 31, 2012
Issued		6,000,000		0.01		2.75 years
Additions as of February 28, 2013
Issued		-		-
Balance as at February 28, 2013		6,000,000		0.01		2.25 years

As of February 28, 2013, there were 6,000,000 warrants outstanding and exercisable with expiration dates commencing June 2015.

Except as set forth under limited circumstances, the warrants do not permit net cash settlement.

Stock Options

During the six months ended February 28, 2013, the Company granted 100,000 Non Qualified Stock Options at an exercise price of $0.31 vesting on October 24, 2013 and expiring on October 23, 2017 to a director. For the six months ended February 28, 2013, the compensation expense of these options was $3,511 and is included in the Condensed Consolidated Statements of Operations.

Valuation Assumptions

The Company uses the Black-Scholes option pricing model to estimate the fair value of stock option awards or related modifications. The Black-Scholes model requires the use of subjective and complex assumptions including the option's expected life and the underlying stock price volatility. The Company expects future volatility to approximate historical volatility of similar companies. The following weighted average assumptions were used for estimating the fair value of options granted during the six months ended February 28, 2013:

	2013			2012
Risk-free interest rate		0.77	%		-
Expected life		5 years			-
Volatility		83	%		-
Dividend yield		0	%		-

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COMMON STOCK, WARRANTS AND OPTIONS (Details Textual) (USD $)	3 Months Ended	6 Months Ended			3 Months Ended
	Feb. 28, 2013	Feb. 28, 2013	Feb. 29, 2012	Aug. 31, 2012	Feb. 28, 2013 Common Stock [Member]
Stock forfeited by stockholders to settle payment of withholding tax on behalf of such stockholders	$ (5,645)	$ (5,645)	$ 0		$ (5,645)
Stock forfeited by stockholders to settle payment of withholding tax on behalf of such stockholders (in shares)					40,320
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	6,000,000	6,000,000		6,000,000
Stock-based compensation	$ 3,511	$ 3,511	$ 0
Non Qualified Stock Options		100,000
Investment Options, Exercise Price		$ 0.31
Investment Options, Expiration Date		Oct. 23, 2017
Investment Options Vesting Date		Oct. 24, 2013

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DISCONTINUED OPERATIONS (Details) (USD $)	3 Months Ended		6 Months Ended
	Feb. 28, 2013	Feb. 29, 2012	Feb. 28, 2013	Feb. 29, 2012	Aug. 31, 2012
Sales, general and administrative expenses	$ (75,000)	$ (509,630)	$ (204,200)	$ (884,773)
Other income (expense)
Realized gain on life settlement contracts held under investment method	0	0	0	319,843
Realized loss on extinguishment of debt	0	0	(8,438,584)	0
Change in fair value of life settlement contracts net of premiums paid	0	(1,349,234)	2,055,438	(9,229,160)
Interest expense	0	0	(1,610,571)	0
Loss from discontinued operations before income tax	(75,000)	(1,858,864)	(8,197,917)	(9,794,090)
Income tax benefit	21,202	272,581	3,879,477	3,819,414
Net loss from discontinued operations	(53,798)	(1,586,283)	(4,318,440)	(5,974,676)
ASSETS
Cash and cash equivalents	0		0		228,165
Investment in life settlement contracts at investment method	0		0		4,334,012
Total current assets of discontinued operations	0		0		4,562,177
Investment in life settlement contracts at fair value	0		0		64,667,124
Deferred income taxes	145,781		145,781		0
Total noncurrent assets of discontinued operations	145,781		145,781		64,667,124
LIABILITIES
Interest payable	0		0		626,710
Loans payable	0		0		59,450,000
Income and other taxes payable	775,000		775,000		0
Total current liabilities of discontinued operations	775,000		775,000		60,076,710
Deferred income taxes	0		0		4,243,044
Total long-term liabilities of discontinued operations	$ 0		$ 0		$ 4,243,044

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DISCONTINUED OPERATIONS (Tables)

6 Months Ended

Feb. 28, 2013

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block]

Discontinued operations on the condensed consolidated statement of operations for the three months and six months ended February 28, 2013 and February 29, 2012 are as follows:

	Three months ended February 28, 2013			Three months ended February 29, 2012			Six months ended February 28, 2013			Six months ended February 29, 2012
Sales, general and administrative expenses	$	(75,000	)	$	(509,630	)	$	(204,200	)	$	(884,773	)
Other income (expense)
Realized gain on life settlement contracts held under investment method		-			-			-			319,843
Realized loss on extinguishment of debt		-			-			(8,438,584	)		-
Change in fair value of life settlement contracts net of premiums paid		-			(1,349,234	)		2,055,438			(9,229,160	)
Interest expense		-			-			(1,610,571	)		-
Loss from discontinued operations before income tax		(75,000	)		(1,858,864	)		(8,197,917	)		(9,794,090	)
Income tax benefit		21,202			272,581			3,879,477			3,819,414
Net loss from discontinued operations	$	(53,798	)	$	(1,586,283	)	$	(4,318,440	)	$	(5,974,676	)

Assets and liabilities of discontinued operations for the Company’s life settlements business on the condensed consolidated balance sheets consist of the following:

	February 28, 2013 (unaudited)		August 31, 2012
ASSETS
Current Assets
Cash and cash equivalents	$	-	$	228,165
Investment in life settlement contracts at investment method		-		4,334,012
Total current assets of discontinued operations		-		4,562,177
Investment in life settlement contracts at fair value		-		64,667,124
Deferred income taxes		145,781		-
Total noncurrent assets of discontinued operations	$	145,781	$	64,667,124
LIABILITIES
Current Liabilities
Interest payable	$	-	$	626,710
Loans payable		-		59,450,000
Income and other taxes payable		775,000		-
Total current liabilities of discontinued operations		775,000		60,076,710
Deferred income taxes		-		4,243,044
Total long-term liabilities of discontinued operations	$	-	$	4,243,044

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SUBSEQUENT EVENTS

6 Months Ended

Feb. 28, 2013

Subsequent Events [Abstract]

Subsequent Events [Text Block]

7. SUBSEQUENT EVENTS

Subsequent to February 28, 2013, the Board of Directors of the Company, through unanimous written consent, resolved to adopt the Company’s 2013 Equity Incentive Plan (the “2013 Plan”), pursuant to which the Company may issue up to 30,000,000 shares or options to purchase shares of the Company’s Common Stock to employees, officers, directors, consultants and advisors of the Company.

On March 4, 2013, the Company entered into separate agreements with five independent consultants, pursuant to which each of the respective consultants agreed to provide augmented reality consulting services for the Company’s augmented reality activities. In consideration of the consulting services, the Company granted these consultants a total of 22,600,000 Non Qualified Stock Options (the “Options”), of which 8,050,000 Options were issued under the 2010 Equity Incentive Plan (the “2010 Plan”) and 14,550,000 Options were issued under the 2013 Plan. The Options have an exercise price of $0.10, vesting on March 4, 2013 and expiring on March 5, 2018.The fair value of these Options at grant date was $4,497,400.

On March 6, 2013, the Company granted an officer a total of 230,000 Options issued under the 2010 Plan with an exercise price of $0.25, which Options vest on March 6, 2013 and expire on March 7, 2018. The fair value of these Options at grant date was $28,290.

On March 6, 2013, the Company entered into an At-Will Employment Agreement with Helen Papagiannis pursuant to which she will serve as the Chief Innovation Officer of the Company. Ms. Papagiannis will receive an annual base compensation of $200,000. Additionally, Ms. Papagiannis was granted 500,000 Options under the Company’s 2010 Plan, with an exercise price of $0.25. 100,000 of such Options vest on March 6, 2013 and expire on March 7, 2018. 400,000 of such Options vest quarterly over the next 2 years (in equal amounts of 50,000 Options at the beginning of the Company’s quarterly reporting periods, i.e. December 1, March 1, June 1 and September 1), and expire 5 years from each vesting date. The fair value of these Options at grant date was $66,000.

On March 25, 2013, the Company received a short-term loan from a shareholder of $200,000 at a rate of 8% per annum with a maturity date ending on or before May 31, 2013.

On April 17, 2013 a majority of the Board of Directors of the Company, resolved that the Company enter into the financing transaction contemplated by a Securities Purchase Agreement.

The Company evaluates events that have occurred after the balance sheet date through the date the financial statements were publicly available. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the financial statements .

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SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Feb. 28, 2013

Basis Of Accounting Policy [Policy Text Block]

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements as of February 28, 2013 and February 29, 2012 and for the three months and six months then ended and for the period from November 15, 2012 to February 28, 2013 have been prepared in accordance with the accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 8 of Regulation S-X of the Securities and Exchange Commission (“SEC”) and on the same basis as the annual audited financial statements. The unaudited condensed consolidated financial statements include the accounts of the Company and our wholly-owned subsidiary. All significant intercompany accounts and transactions are eliminated in the consolidation process. The unaudited Balance Sheet as of February 28, 2013, Statements of Operations for the three months and six months ended February 28, 2013 and February 29, 2012 and for the period from November 15, 2012 to February 28, 2013, and Statements of Cash Flows for the six months ended February 28, 2013 and February 29, 2012 and for the period from November 15, 2012 to February 28, 2013, are unaudited, but include all adjustments, consisting only of normal recurring adjustments, which the Company considers necessary for a fair presentation of the financial position, operating results and cash flows for the period presented. The results for the three months and six months ended February 28, 2013 and for the period from November 15, 2012 to February 28, 2013 are not necessarily indicative of results to be expected for the year ending August 31, 2013 or for any future interim period. In addition, the balance sheet data at August 31, 2012 was derived from the audited financial statements but does not include all disclosures required by GAAP. The accompanying financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on January 3, 2013.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company's estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. The most significant estimates with regard to these financial statements relate to deferred income tax amounts and rates and timing of the reversal of income tax differences.

Development Stage Company [Policy Text Block]

Development Stage Company

Effective November 15, 2012, the Company is considered a development stage company, having no operating revenues during the period from November 15, 2012 (“Inception”) to February 28, 2013, as defined by ASC 915-205, Development-Stage Entities. ASC 915-205 requires companies to report their operations, shareholders equity and cash flows upon entering the development stage through the date that revenues are generated. From November 15, 2012 through February 28, 2013, all operating expenses of the Company related to its augmented reality business and is included in the Condensed Consolidated Statements of Operations. The Company had operating expenses of $179,279 and $143,753 respectively for the period from September 1, 2012 to November 15, 2012 and the period from June 1, 2012 to August 31, 2012 respectively, relating to its augmented reality business.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

The Company considers all short term investments with an original maturity of three months or less to be cash equivalents. The Company maintains cash balances that may be uninsured or in deposit accounts that exceed Federal Deposit Insurance Corporation limits. The Company maintains its cash deposits with major financial institutions.

Reclassification, Policy [Policy Text Block]

Reclassifications

During the six months ended February 28, 2013, the Company disposed of all its life settlement contracts. As of February 28, 2013, all of the operations related to the life settlement business, as well as any resulting gain or loss recognized from the disposal, have been reported as discontinued operations in the condensed consolidated financial statements. The Company has also reported the prior period operations related to this business as discontinued operations retrospectively for all periods presented. Additionally, the assets and liabilities related to the life settlements business have been classified as discontinued operations in the consolidated balance sheets for all periods presented. See Note 3 - Discontinued Operations for more information.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Financial Instruments

The fair value of certain of the Company's financial instruments, consisting of cash, accounts payable and accrued expenses are estimated to be equal to their carrying value due to the short-term nature of these instruments. It is management's opinion that the Company is not exposed to significant interest, currency and credit risks arising from these financial instruments.

Deferred Charges, Policy [Policy Text Block]

Deferred Rent Liability

The Company’s operating lease provides for minimum annual payments that adjust over the life of the lease. The aggregate minimum annual payments are expensed on the straight-line basis over the minimum lease term. The Company recognizes a deferred rent liability for rent escalations when the amount of straight-line rent exceeds the lease payments, and reduces the deferred rent liability when the lease payments exceed the straight-line rent expense.

Research, Development, and Computer Software, Policy [Policy Text Block]

Software Development Costs

The Company applies the principles of ASC 985-20, Software- Costs of Software to Be Sold, Leased, or Marketed, which requires that software development costs incurred in conjunction with product development be charged to research and development expense until technological feasibility is established. Thereafter, until the product is released for sale, software development costs must be capitalized and reported at the lower of unamortized cost or net realizable value of the related product. The Company has adopted the "tested working model" approach to establishing technological feasibility for its products. Under this approach, a product in development is not considered to have passed the technological feasibility milestone until the Company has produced a model of the product that contains essentially all the functionality and features of the final product and have tested the model to ensure that it works as expected. The Company has expensed all software development costs when incurred since they have not reached technological feasibility.

Income Tax, Policy [Policy Text Block]

Income Taxes

Deferred income taxes are provided for tax effects of temporary differences between the tax basis of asset and liabilities and their reported amounts in the financial statements. The Company uses the liability method to account for income taxes, which requires deferred taxes to be recorded at the statutory rate expected to be in effect when the taxes are paid. Valuation allowances are provided for a deferred tax asset when it is more likely than not that such asset will not be realized.

Management evaluates tax positions taken or expected to be taken in a tax return. The evaluation of a tax position includes a determination of whether a tax position should be recognized in the financial statements, and such a position should only be recognized if the Company determines that it is more likely than not that the tax position will be sustained upon examination by the tax authorities, based upon the technical merits of the position. For those tax positions that should be recognized, the measurement of a tax position is determined as being the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement.

The Company’s policy for recording interest and penalties associated with audits is to record such expense as a component of income tax expense.

Earnings Per Share, Policy [Policy Text Block]

Earnings (Loss) per Share

Basic earnings (loss) per share is calculated using the weighted average number of shares of common stock outstanding during the period. Included in basic loss per share calculations are the effects of 6,000,000 warrants exercisable at $.01. Diluted earnings per share reflect the potential dilution that could occur if potentially dilutive securities were exercised or converted to common stock. The dilutive effect of options and warrants and their equivalent is computed by application of the treasury stock method and the effect of convertible securities by the “if converted” method. There are no other potential common shares at February 28, 2013. For the three months and six months ended February 29, 2012, 26,650,000 and 27,092,500 warrants with an exercise price of $2.00 and $4.00 respectively, and 53,300 Series A and Series B preferred shares, convertible into 53,300,000 common shares are not included in diluted earnings per share since their effect would be anti-dilutive.

Compensation Related Costs, Policy [Policy Text Block]

Stock-Based Compensation

The Company records stock-based compensation expense in accordance with ASC 718, Compensation - Stock Compensation. The Company accounts for stock based compensation arrangements using a fair value method and records such expense on a straight-line basis over the estimated life of the instrument.

New Accounting Pronouncements Policy [Policy Text Block]

Recent Accounting Pronouncements

Other pronouncements issued by the FASB or other authoritative accounting standards groups with future effective dates are either not applicable or are not expected to be significant to the condensed consolidated financial statements of the Company.

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COMMON STOCK, WARRANTS AND OPTIONS (Tables)

6 Months Ended

Feb. 28, 2013

Stockholders' Equity Note [Abstract]

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

Warrant transactions are summarized as follows:

	Number of warrants		Weighted average exercise price		Weighted average life remaining (in years)
Balance as at August 31, 2012
Issued		6,000,000		0.01		2.75 years
Additions as of February 28, 2013
Issued		-		-
Balance as at February 28, 2013		6,000,000		0.01		2.25 years

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

The following weighted average assumptions were used for estimating the fair value of options granted during the six months ended February 28, 2013:

	2013			2012
Risk-free interest rate		0.77	%		-
Expected life		5 years			-
Volatility		83	%		-
Dividend yield		0	%		-

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COMMON STOCK, WARRANTS AND OPTIONS (Details) (USD $)	6 Months Ended
	Feb. 28, 2013
Balance (Number of Warrants)	6,000,000
Number of Warrants, Issued	0
Balance (Number of Warrants)	6,000,000
Balance (Weighted average exercise price)	$ 0.01
Weighted average exercise price, Issued	$ 0
Balance (Weighted average exercise price)	$ 0.01
Balance (Weighted average life remaining) (in years)	2 years 9 months
Balance (Weighted average life remaining) (in years)	2 years 3 months

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SUBSEQUENT EVENTS (Details Textual) (USD $)	6 Months Ended
	Feb. 28, 2013	Mar. 01, 2013	Dec. 02, 2012
Non Qualified Stock Options	100,000
Investment Options, Exercise Price	$ 0.31
Investment Options, Expiration Date	Oct. 23, 2017
Investment Options Vesting Date	Oct. 24, 2013
March 2013 [Member]
Non Qualified Stock Options	230,000
Non Qualified Stock Options Expected To Vest	400,000
Short Term Debt	$ 200,000
Interest Rate On Short Term Debt	8.00%
Debt Instrument, Maturity Date	May 31, 2013
March 2013 [Member] | Ms. Papagiannis [Member]
Non Qualified Stock Options	500,000
Investment Options, Exercise Price	$ 0.25
Investment Options, Expiration Date	Mar. 07, 2018
Investment Options Vesting Date	Mar. 06, 2013
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Grant Date Fair Value	66,000
Officers' Compensation	200,000
Share Based Compensation Arrangement By Share Based Payment Award Options Expected To Vest Outstanding Number	100,000	50,000	50,000
Share Based Compensation Arrangement By Share Based Payment Award Options Expected To Vest Outstanding Contractual Term	5 years
June 2013 [Member] | Ms. Papagiannis [Member]
Share Based Compensation Arrangement By Share Based Payment Award Options Expected To Vest Outstanding Number	50,000
September 2013 [Member] | Ms. Papagiannis [Member]
Share Based Compensation Arrangement By Share Based Payment Award Options Expected To Vest Outstanding Number	50,000
December 2013 [Member] | Ms. Papagiannis [Member]
Share Based Compensation Arrangement By Share Based Payment Award Options Expected To Vest Outstanding Number	50,000
March 2014 [Member] | Ms. Papagiannis [Member]
Share Based Compensation Arrangement By Share Based Payment Award Options Expected To Vest Outstanding Number	50,000
June 2014 [Member] | Ms. Papagiannis [Member]
Share Based Compensation Arrangement By Share Based Payment Award Options Expected To Vest Outstanding Number	50,000
September 2014 [Member] | Ms. Papagiannis [Member]
Share Based Compensation Arrangement By Share Based Payment Award Options Expected To Vest Outstanding Number	50,000
Equity Incentive Plan 2013 [Member]
Non Qualified Stock Options	22,600,000
Number Of Common Stock Authorized To Be Available Under 2013 Equity Incentive Plan	30,000,000
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Grant Date Fair Value	4,497,400
Equity Incentive Plan 2013 [Member] | March 2013 [Member]
Non Qualified Stock Options	14,550,000
Investment Options, Exercise Price	$ 0.10
Investment Options, Expiration Date	Mar. 05, 2018
Investment Options Vesting Date	Mar. 04, 2013
Equity Incentive Plan 2010 [Member] | March 2013 [Member]
Non Qualified Stock Options	8,050,000
Investment Options, Exercise Price	$ 0.25
Investment Options, Expiration Date	Mar. 07, 2018
Investment Options Vesting Date	Mar. 06, 2013
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Grant Date Fair Value	$ 28,290

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Parenthetical] (USD $)	3 Months Ended	6 Months Ended
	Feb. 28, 2013	Feb. 28, 2013
loss on disposal of life settlement contracts	$ 8,438,584	$ 8,438,584

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PREFERRED STOCK

6 Months Ended

Feb. 28, 2013

Equity [Abstract]

Preferred Stock [Text Block]

4. PREFERRED STOCK

As of February 28, 2013, there are no outstanding Series A Preferred Stock or Series B Preferred Stock.

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DISCONTINUED OPERATIONS (Details Textual) (USD $)	3 Months Ended		6 Months Ended
	Feb. 28, 2013	Feb. 29, 2012	Feb. 28, 2013	Feb. 29, 2012
Disposal Group Including Discontinued Operation Life Settlement Contract			$ 10,000,000
Liabilities of Disposal Group, Including Discontinued Operation	9,378,807		9,378,807
Interest Paid			2,123,281
Disposal Group Including Discontinued Operation Revolving Loan Principal	5,971,000		5,971,000
Disposal Group Including Discontinued Operation Revolving Loan Interest	114,000		114,000
Disposal Group Including Discontinued Operation Revolving Total	6,085,000		6,085,000
Disposal Group Including Discontinued Operation Premium Payable	1,170,526		1,170,526
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense	$ 75,000	$ 0	$ 75,000	$ 0