Accounts Payable and Accrued Expenses - Shareholders

9 Months Ended

Oct. 31, 2011

Payables and Accruals

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

(7)        Accounts Payable and Accrued Expenses – Shareholders

During the year ended January 31, 2011, the Company repaid $25,000 due to a shareholder. In addition, two shareholders converted $171,589 of amounts owed to them into 2,850,820 shares of common stock as part of a private placement.

During the quarter ending October 31, 2011, a shareholder reduced the debt owing to him by converting $269,180 of debt into common equity. The shareholder exercised 1,679,150 warrants to purchase common shares at $0.12, exercised 300,000 in options at $0.10 and accepted 2,164,000 common shares for a total settlement of $269,180.

Another shareholder exercised 1,180,670 warrants to purchase common shares at $0.12, and accepted an additional 1,000,000 common shares in full settlement of debt owing in the amount of $141,680.40.