RELATED PARTIES TRANSACTIONS

9 Months Ended

Nov. 30, 2014

RELATED PARTIES TRANSACTIONS [Abstract]

RELATED PARTIES TRANSACTIONS

NOTE 12 – RELATED PARTIES TRANSACTIONS

At November 30, 2014, the balance in Notes Payable and accrued interest-related party, current, includes $13,919,960 of unsecured notes payable plus accrued interest of $5,868,655 to a member of our Board of Directors, payable on demand, bearing interest at a rate of 10% per annum. During the nine months ended November 30, 2014 and November 30, 2013, interest amounting to $1,043,720 and $1,032,647 respectively, was incurred on these notes. The balance also includes $82,000 of unsecured notes payable plus accrued interest of $13,536 to our CEO pursuant to a demand note entered into on April 5, 2013 and an unsecured note payable to another member of our Board of Directors in the total amount of $2,715,206 plus accrued interest of $121,680 with interest at a rate of 10% per annum.

At November 30, 2014, the balance in Convertible note payable and accrued interest-related party, long term, includes $1,630,684 of secured convertible notes payable net of discounts of $369,316 plus accrued interest of $348,144 to a 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, non-accountable fee of $30,000 per month plus expenses.