Stockholders' Equity (Tables)

12 Months Ended

Aug. 31, 2014

Equity [Abstract]

Series A Convertible Preferred Stock

	Preferred	Number of				Weighted Avg.
	Shares	Common Shares		Proceeds if		Per Common Sh.
	Outstanding	Convertible		Converted		Exercise Price
Outstanding, August 31, 2012	129,062	64,531	$	25,812	$	0.40
Expired/Retired	—	—		—	$	—
Converted	—	—		—	$	0.40
Issued	—	—		—	$	—
Outstanding, August 31, 2013	129,062	64,531	$	25,812	$	0.40
Expired/Retired	—	—		—	$	0.40
Converted	—	—		—	$	—
Issued	—	—		—	$	—
Outstanding, August 31, 2014	129,062	64,531	$	25,812	$	0.40

Series D Convertible Preferred Stock

		Preferred		Number of				Weighted Avg.
		Shares		Common Shares		Proceeds if		Per Common Sh.
		Outstanding		Convertible		Converted		Exercise Price
Outstanding, August 31, 2012			—		—	$	—	$	—
Expired/Retired			—		—		—	$	—
Converted			—		—		—	$	—
Issued			58,564		58,564,000		—	$	80.25
Outstanding, August 31, 2013			58,564		58,564,000	$	—	$	—
Expired/Retired			—		—		—	$	—
Converted			—		—		—	$	—
Issued			20,000		20,000,000		—	$	80.25
	Outstanding, August 31, 2014		78,564		78,564,000	$	—	$	80.25

Subscribed Stock issuable

For the period Ended August 31, 2014
	Shares		Amount
Shares issuable upon conversion of convertible notes payable		1,058,201	$	5,000
Total subscribed stock		1,058,201	$	5,000
For the year Ended August 31, 2013
		Shares		Amount
Shares issuable upon conversion of convertible notes payable		—	$	—
Total subscribed stock		—	$	—

Common Stock

Date	Securities		Underwriters/
Sold	Sold	Consideration	Purchasers *	Notes
10/15/2012	1,000,000	$             20,000	Accredited Investor	The Company sold 1,000,000 shares of common stock to a non-related accredited investor at $0.02 per share.  These shares were exempt from registration under Section 4(2) of the Securities Act
1/6/2013	2,000,000	$             20,000	Accredited Investor	The Company sold 2,000,000 shares of common stock to a non-related accredited investor at $0.01 per share.  These shares were exempt from registration under Section 4(2) of the Securities Act
2/8/2013	1,024,164	$                     -	Anthony Silverman, former CEO	Anthony Silverman, our former President and CEO, converted a promissory note in the amount of $10,242 in principal and interest into 1,024,164 shares of common stock at $0.01 per share.  These shares were exempt from registration under Section 4(2) of the Securities Act.
6/17/2013	2,000,000	$             10,000	Accredited Investor	The Company sold 2,000,000 shares of common stock to a non-related accredited investor at $0.005 per share.  These shares were exempt from registration under Section 4(2) of the Securities Act
7/17/2013	4,000,000	$             20,000	Accredited Investor	The Company sold 4,000,000 shares of common stock to a non-related accredited investor at $0.005 per share.  These shares were exempt from registration under Section 4(2) of the Securities Act
8/8/2013	6,000,000	$             36,000	Accredited Investor	The Company sold 6,000,000 shares of common stock to a non-related accredited investor at $0.006 per share.  These shares were exempt from registration under Section 4(2) of the Securities Act
9/12/2013	1,000,000	$                     -	Vendor	The Company issued 1,000,000 S-8 shares to a vendor for consulting work.  The Company recorded an expense of $11,500 upon the issuance of those shares.
9/12/2013	1,500,000	$             10,000	Accredited Investor	The Company sold 1,500,000 shares of common stock to an affiliated accredited investor at $0.00667 per share.  These shares were exempt from registration under Section 4(2) of the Securities Act
10/3/2013	4,000,000	$                     -	Accredited Investor	A non-affiliated accredited investor converted a promissory note in the amount of $15,620 in principal and interest into 4,000,000 shares of common stock at $0.00391 per share.  These shares were exempt from registration under Section 4(2) of the Securities Act.
12/3/2013	1,891,123	$                     -	Accredited Investor	A non-affiliated accredited investor converted a promissory note in the amount of $9,380 in principal and interest into 1,891,123 shares of common stock at $0.00496 per share.  These shares were exempt from registration under Section 4(2) of the Securities Act.
1/3/2014	2,000,000	$                     -	Vendor	The company issued 2,000,000 shares of common stock as consideration for services.  The company recorded an expense of $22,000 in connection with this issuance.  These shares were exempt from registration under Section 4(2) of the Securities Act.
1/13/2014	3,076,923	$                     -	Accredited Investor	A non-affiliated accredited investor converted a promissory note in the amount of $20,000 in principal and interest into 3,076,923 shares of common stock at $0.0065 per share.  These shares were exempt from registration under Section 4(2) of the Securities Act.
1/14/2014	1,000,000	$                     -	Vendor	The company issued 1,000,000 shares of common stock as consideration for services.  The company recorded an expense of $19,000 in connection with this issuance.  These shares were exempt from registration under Section 4(2) of the Securities Act.
1/15/2014	117,436	$                     -	Accredited Investor	Additional reset shares were issued to a non-affiliated accredited investor in connection with the prior conversion of $9,380 in principal and interest into 117,436 shares of common stock.  These shares were exempt from registration under Section 4(2) of the Securities Act.

1/21/2014	3,500,000	$                     -	Accredited Investor	The company issued 3,500,000 shares of common stock as consideration for  fees.  The company recorded an expense of $45,500 in connection with this issuance.  These shares were exempt from registration under Section 4(2) of the Securities Act.
1/21/2014	1,500,000	$                     -	Accredited Investor	The company issued 1,500,000 shares of common stock as consideration for  fees.  The company recorded an expense of $30,000 in connection with this issuance.  These shares were exempt from registration under Section 4(2) of the Securities Act.
1/31/2014	3,472,222	$                     -	Accredited Investor	A non-affiliated accredited investor converted a promissory note in the amount of $25,000 in principal and interest into 3,472,222 shares of common stock at $0.0072 per share.  These shares were exempt from registration under Section 4(2) of the Securities Act.
2/7/2014	1,000,000	$                     -	Accredited Investor	The company issued 1,000,000 shares of common stock as consideration for  fees.  The company recorded an expense of $9,000 in connection with this issuance.  These shares were exempt from registration under Section 4(2) of the Securities Act.
2/24/2014	4,615,385	$                     -	Accredited Investor	A non-affiliated accredited investor converted a promissory note in the amount of $30,000 in principal and interest into 4,615,385 shares of common stock at $0.0065 per share.  These shares were exempt from registration under Section 4(2) of the Securities Act.
3/12/2014	4,615,385	$                     -	Accredited Investor	A non-affiliated accredited investor converted a promissory note in the amount of $30,000 in principal and interest into 4,615,385 shares of common stock at $0.0065 per share.  These shares were exempt from registration under Section 4(2) of the Securities Act.
4/7/2014	2,936,314	$                     -	Accredited Investor	A non-affiliated accredited investor converted a promissory note in the amount of $19,086 in principal and interest into 2,936,314 shares of common stock at $0.0065 per share.  These shares were exempt from registration under Section 4(2) of the Securities Act.
4/7/2014	5,383,007	$                     -	Accredited Investor	A non-affiliated accredited investor converted a promissory note in the amount of $17,764 in principal and interest into 5,383,007 shares of common stock at $0.0033 per share.  These shares were exempt from registration under Section 4(2) of the Securities Act.
6/2/2014	5,000,000	$                     -	Accredited Investor	The company issued 5,000,000 shares of common stock as consideration for services.  The company recorded an expense of $30,000 in connection with this issuance.  These shares were exempt from registration under Section 4(2) of the Securities Act.
6/25/2014	5,138,746	$                     -	Accredited Investor	A non-affiliated accredited investor converted a promissory note in the amount of $25,000 in principal and interest into 5,138,746 shares of common stock at $0.004865 per share.  These shares were exempt from registration under Section 4(2) of the Securities Act.
7/14/2014	2,500,000		Accredited Investor	A non-affiliated accredited investor converted a promissory note in the amount of $11,000 in principal and interest into 2,500,000 shares of common stock at $0.0044 per share.  These shares were exempt from registration under Section 4(2) of the Securities Act.
7/24/2014	1,149,425		Accredited Investor	A non-affiliated accredited investor converted a promissory note in the amount of $5,000 in principal and interest into 1,149,425 shares of common stock at $0.00435 per share.  These shares were exempt from registration under Section 4(2) of the Securities Act.
8/1/2014	3,416,764		Accredited Investor	A non-affiliated accredited investor converted a promissory note in the amount of $8,456 in principal and interest into 3,416,764 shares of common stock at $0.002475 per share.  These shares were exempt from registration under Section 4(2) of the Securities Act.
8/26/2014	1,200,000	$                     -	Accredited Investor	The Company sold 1,200,000 shares of common stock to an affiliated accredited investor at $0.00833 per share.  These shares were exempt from registration under Section 4(2) of the Securities Act
	76,036,894	$           116,000
*  There were no underwriters associated with any of our Sales of Unregistered Securities.

Warrant Activity

		Weighted Avg.
	Number	Exercise Price
Outstanding, August 31, 2012	-	-
Expired/Retired	-	-
Exercised	-	-
Issued	7,000,000	0.012
Outstanding, August 31, 2013	7,000,000	-
Expired/Retired	-	-
Exercised	-	-
Issued	23,583,333	0.011
Outstanding, August 31, 2014	30,583,333	0.011

Fair-Value of Warrants

	For the Year Ended August 31,
	2014	2013
Volatility	104% - 444%	97.2% to 97.9%
Risk free rate	0.25%	0.38%
Expected dividends	None	None
Expected term (in years)	2 to 5 years	3 to 4 years

Exercisable outstanding warrants

		Weighted
		Average
Date of	Number	Exercise	Remaining	Expiration
Grant	of Shares	Price	Exercise Life	Date
Fourth quarter of fiscal 2013	7,000,000	$     0.012	3 to 4 years	July 2017
Outstanding, August 31, 2013	7,000,000
First quarter of fiscal 2014	4,500,000	$     0.012	3 years	November 2017
Second quarter of fiscal 2014	5,500,000	$     0.017	2 to 3 years	Dec 2015 to Dec 2016
Third quarter of fiscal 2014	9,583,333	$     0.012	5 years	May 2019
Fourth quarter of fiscal 2014	4,000,000	$     0.007	2 years	August 2016
Outstanding, August 31, 2014	30,583,333

Stock Options

					Weighted Average
	Number of		Option Price		Exercise Price
	Options Granted		Per Share		Per Share
Outstanding, August 31, 2012	297,085		$0.12 - $5.16	$	1.430
Granted	—		—	$	—
Exercised	—		—	$	—
Cancelled	(80,000	)	$1.60 - $5.16	$	2.420
Outstanding, August 31, 2013	217,085		$0.12 - $2.00	$	1.120
Granted	6,120,000		$0.015 - $0.016	$	0.020
Exercised	—		—	$	—
Cancelled	(163,335	)	$1.04 - $2.00	$	1.380
Outstanding, August 31, 2014	6,173,750		$0.12 - $2.00	$	0.016

Average Intrinsic Value of Options

	Options			Options
	Outstanding			Exercisable
Number of options		6,173,750		6,173,750
Aggregate intrinsic value of options	$	—	$	—
Weighted average remaining contractual term (years)		9.23		9.23
Weighted average exercise price	$	0.016	$	0.016