RELATED PARTY TRANSACTIONS

3 Months Ended

May 31, 2014

RELATED PARTY TRANSACTIONS [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 12 – RELATED PARTIES TRANSACTIONS

At May 31, 2014, the balance in Notes Payable and accrued interest-related party, current, includes $13,819,960 of unsecured notes payable plus accrued interest of $5,171,717 to a member of our Board of Directors, payable on demand, bearing interest at a rate of 10% per annum. During the three months ended May 31, 2014 and May 31, 2013, interest amounting to $346,782 and $346,782 respectively, was incurred on these notes. The balance also includes $82,000 of unsecured notes payable plus accrued interest of $9,434 to our CEO pursuant to a demand note entered into on April 5, 2013 and two unsecured notes payable to another member of our Board of Directors in the total amount of $1,363,000 plus accrued interest of $56,466 pursuant to 10% demand notes payable.

At May 31, 2014, the balance in Convertible note payable and accrued interest-related party, long term, includes $2,047,294 of secured convertible notes payable net of discounts of $452,706 plus accrued interest of $223,439 to another member of our Board of Directors. The company retains the daughter of a 5% shareholder as its’ corporate attorney. Since January 2013 this has been at a fixed fee of $30,000 per month plus expenses.