Red Giant Entertainment 10-Q 4 Jun 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Nov. 30, 2014	Jun. 02, 2015
Document And Entity Information
Entity Registrant Name	Red Giant Entertainment, Inc.
Entity Central Index Key	1411179
Document Type	10-Q
Document Period End Date	30-Nov-14
Amendment Flag	FALSE
Current Fiscal Year End Date	-23
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	No
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,988,799,395
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2015

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Nov. 30, 2014	Aug. 31, 2014
Current Assets
Cash and cash equivalents	$82,520	$5,953
Inventory	6,990	6,990
Total Current Assets	89,510	12,943
Property and equipment, net of accumulated depreciation of $6,476 and $5,103, respectively	24,529	25,902
TOTAL ASSETS	114,039	38,845
Current Liabilities
Accounts payable	214,337	230,281
Shareholder loans	7,731	58,839
Convertible notes payable, net of discounts	615,299	447,032
Derivative liability, notes	3,757,252	3,518,650
Derivative liability, warrants	35,000	35,000
Total Current Liabilities	4,629,659	4,289,802
TOTAL LIABILITIES	4,629,659	4,289,802
Stockholders' Deficit
Preferred stock: 100,000,000 authorized; $0.0001 par 10,000,000 shares issued and outstanding	1,000
Common stock: 6,000,000,000 authorized; $0.0001 par 2,697,687,232 and 2,540,260,752 shares issued and outstanding	269,769	254,026
Additional paid in capital	7,371,997	6,863,020
Treasury stock, at cost, 1,785,900 shares	-55,000	-55,000
Accumulated deficit	-12,103,386	-11,313,003
Total Stockholders' Deficit	-4,515,620	-4,250,957
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$114,039	$38,845

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Nov. 30, 2014	Aug. 31, 2014
Current Assets
Property and equipment, net of accumulated depreciation	$6,476	$5,103
Stockholders' (Deficit) Equity
Preferred stock, par value	$0.00	$0.00
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	10,000,000	10,000,000
Preferred stock, shares outstanding	10,000,000	10,000,000
Common stock, par value	$0.00	$0.00
Common stock, shares authorized	6,000,000,000	6,000,000,000
Common stock, shares issued	2,697,687,232	2,540,260,752
Common stock, shares outstanding	2,697,687,232	2,540,260,752
Treasury stock	1,785,900	1,785,900

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (unaudited) (USD $)	3 Months Ended
	Nov. 30, 2014	Nov. 30, 2013
Statements Of Operations
Revenues	$895	$3,379
Cost of sales	837	2,378
Gross Profit	58	1,001
Operating Expenses
Selling and marketing	1,166	52,841
Compensation	7,601	14,242
Professional	38,054	18,970
General & administrative	221,393	45,769
Depreciation and amortization	1,373	5,790
Total operating expenses	269,587	137,612
Net loss from operations	-269,587	-136,611
Other income (expense)
Interest expense	-259,249	-193,811
Change in derivatives	-261,605	-31,399
Gain (loss) on settlement of liabilities and derivative valuation		-68,200
Income taxes
Net loss	($790,383)	($430,021)
Basic and dilutive loss per share	$0	$0
Weighted average number of shares outstanding	2,601,765,486	438,927,273

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (unaudited) (USD $)	3 Months Ended
	Nov. 30, 2014	Nov. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss)	($790,383)	($430,021)
Adjustment to reconcile Net Income to net cash provided by operations:
Depreciation & amortization	1,373	5,790
Amortization of deferred financing costs	220,984	193,811
Change in derivatives	261,605	31,399
(Gain) Loss on settlements		68,200
(Increase) decrease in operating assets:
Accounts receivable		-2,095
Inventory		1,115
Prepaid expenses and other assets		-7,092
Accrued expenses	-15,904	-9,119
Total adjustments	468,058	282,009
Net Cash (Used in) Operating Activities	-322,325	-148,012
CASH FLOWS FROM INVESTING ACTIVITIES:
Net Cash (Used in) Investing Activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Shareholder loans, net	-1,108	3,114
Proceeds from Loan(s)	100,000	130,000
Proceeds from issuance of stock	300,000
Net Cash (Used in) Provided by Financing Activities	398,892	133,114
Net increase (decrease) in cash and cash equivalents	76,567	-14,898
Cash and cash equivalents, beginning of period	5,953	14,937
Cash and cash equivalents, end of period	82,520	39
Supplemental cash flow information
Cash paid for interest
Cash paid for taxes
Non-cash transactions:
Expenses paid from proceeds of debt		15,500
Debt converted to equity	52,717	60,000
Stock exchanged for shareholder debt	$50,000

Organization_and_Description_o

Organization and Description of Business	3 Months Ended
	Nov. 30, 2014
Organization And Description Of Business
Note 1. Organization and Description of Business	Red Giant Entertainment LLC (the “LLC”) was formed in the State of Florida, U.S.A., on January 1, 2011.  On May 9, 2012, the LLC incorporated and changed its name to Red Giant Entertainment, Inc.  (“RGE”). The LLC was originally a publishing company, but has expanded its operations to include mass media and graphic novel artwork development.
	On March 4, 2013, the Company acquired ComicGenesis, LLC (“ComicGenesis”), a Nevada limited liability company that operates a user-generated comic site that hosts over 10,000 independent webcomics.

Summary_of_Significant_Account

Summary of Significant Accounting Policies	3 Months Ended
	Nov. 30, 2014
Summary Of Significant Accounting Policies
Note 2. Summary of Significant Accounting Policies	Interim Financial Statements - Basis of Presentation
	The Company prepares its financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which require 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 reported amounts of revenues and expenses during the reporting period.  Significant estimates include the allowance for doubtful accounts, inventory valuation, useful lives and valuation of property and equipment and intangible assets, stock based compensation, derivative liabilities, and the deferred tax assets valuation allowance.  Actual results could differ from those estimates.
	The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X.  Accordingly, the financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.
	In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the financial statements presented not misleading.  The results of operations for such interim periods are not necessarily indicative of operations for a full year.
	These consolidated financial statements should be read in conjunction with the financial statements for the fiscal year ended August 31, 2014, and the notes thereto and other pertinent information contained in our Form 10-K filed with the Securities and Exchange Commission on April 6, 2015.
	Principles of Consolidation
	The Company operates under the name of Red Giant Entertainment, Inc. and its wholly owned subsidiaries RGE and ComicGenesis.  The companies were incorporated for the intentions of developing brand names.  Any activities of these subsidiaries or holdings have been included in the consolidated financial statements, with elimination of any intercompany accounts and transactions.
	Fair Value Measurements
	Topic 820 in the Accounting Standards Codification (ASC 820) defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements.  ASC 820 applies whenever other standards require (or permit) assets or liabilities to be measured at fair value but does not expand the use of fair value in any new circumstances.  In this standard, the FASB clarifies the principle that fair value should be based on the assumptions market participants would use when pricing the asset or liability.  In support of this principle, ASC 820 establishes a fair value hierarchy that prioritizes the information used to develop those assumptions.  The fair value hierarchy is as follows:
	·	Level 1 inputs — Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date.
	·	Level 2 inputs — Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.  These might include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals.
	·	Level 3 inputs — Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.
	Cash Flow Reporting
	The Company follows ASC 230, Statement of Cash Flows, for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (“Indirect method”) as defined by ASC 230, Statement of Cash Flows, to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments.
	Cash and Cash Equivalents
	For purposes of the statement of cash flows, the Company considers all highly liquid investments and short-term debt instruments with original maturities of three months or less to be cash equivalents. We had no cash equivalents during the years then ended.
	Property and Equipment
	Property and equipment are recorded at historical cost.  Depreciation is calculated on a straight-line basis over the estimated useful life of the asset.  The Company currently has equipment being depreciated for estimated lives of three to five years.
	Intangible Assets
	Intangible assets, including intellectual property and a web site, have been recorded at their fair historical cost. Amortization is calculated on a straight-line basis over the estimated useful life of three years.  The Company periodically tests the carrying value for impairment as noted below.  As of November 30, 2014 and August 31, 2014, all intangible assets have been fully amortized or impaired.
	Long-lived Assets Impairment
	Long-lived assets of the Company are reviewed for impairment whenever events or circumstances indicate that the carrying amount of assets may not be recoverable, pursuant to guidance established in ASC 360, Property, Plant and Equipment.  Management considers assets to be impaired if the carrying value exceeds the future projected cash flows from related operations (undiscounted and without interest charges).  If impairment is deemed to exist, the assets will be written down to fair value.  Fair value is generally determined using a discounted cash flow analysis.
	Revenue Recognition
	Revenue for the Company is recognized from three primary sources: Advertising Revenue, Publishing Sales and Creative Services.  Revenue was processed through our Paypal Account and Project Wonderful accounts where applicable.
	Advertising Revenue comes from the following sources and is stated at net after commissions:
	·	Keenspot:  Revenue is earned on a net 90-day basis and is based upon traffic to Red Giant property Web sites.  It is calculated on a Cost Per Thousand (CPM) of verified impressions and varies based upon bids by advertisers and other customary factors.  In exchange for advertising, hosting, IT, and sales management, Keenspot takes 50% commission of ad revenue for their services.
	·	Project Wonderful: Revenue is recorded upon delivery of services and priced based upon bids by advertisers for a set amount of time at the prevailing highest winning rate.  Project Wonderful takes a 25% commission of ad revenue for their services.
	Publishing Revenue comes from the following sources:
	·	Kickstarter Campaigns:  These are presales for books, and revenue is recognized when the books are shipped to the buyers.
	·	Direct Sales:  Through our online store, we sell directly to clients and the transactions process through our Paypal account.  All orders are shipped immediately and revenue is recognized upon shipment.
	Creative Services are artwork, writing, advertising, and other creative endeavors we handle for outside clients.  Revenue is recognized upon completion of the services.
	Shipping and Handling for purchases are paid directly by the consumer through PayPal.
	Cost of Sales
	Cost of sales includes the cost of creating services or artwork, advertising and books.
	Advertising
	Advertising costs are expensed as incurred.  The Company expensed advertising costs of $0 and $25,014 for the three months ending November 30, 2014 and 2013, respectively.
	Stock Based Compensation
	The Company issues restricted stock to consultants for various services.  The costs for these transactions are measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable.  The value of the common stock is measured at the earlier of (i) the date at which a firm commitment for performance by the counterparty to earn the equity instruments is reached or (ii) the date at which the counterparty’s performance is complete.  The Company recognized consulting expenses and a corresponding increase to additional paid-in-capital related to stock issued for services. For agreements requiring future services, the consulting expense is to be recognized ratably over the requisite service period.
	Income Taxes
	The Company accounts for income taxes pursuant to the provisions of ASC 740-10,”Accounting for Income Taxes,” which requires, among other things, an asset and a liability approach to calculating deferred income taxes. The asset and liability approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. A valuation allowance is provided to offset any net deferred tax assets for which management believes it is more likely than not that the net deferred asset will not be realized.
	The Company follows the provisions of ASC 740-10 related to accounting for uncertain income tax positions. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the positions that would be ultimately sustained. In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable tax authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above should be reflected as a liability for uncertain tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company believes its tax positions are all highly certain of being upheld upon examination. As such, the Company has not recorded a liability for uncertain tax benefits.
	The Company has adopted ASC 740-10-25, Definition of Settlement, which provides guidance on how an entity should determine whether a tax position is effectively settled for the purpose of recognizing previously unrecognized tax benefits and provides that a tax position can be effectively settled upon the completion of an examination by a taxing authority without being legally extinguished. For tax positions considered effectively settled, an entity would recognize the full amount of tax benefit, even if the tax position is not considered more likely than not to be sustained based solely on the basis of its technical merits and the statute of limitations remains open.
	Earnings (Loss) Per Share
	The Company follows ASC 260, Earnings Per Share, which provides for calculation of “basic” and “diluted” earnings per share.  Basic earnings per share includes no dilution and is computed by dividing net income available to common stockholders by the weighted average common shares outstanding for the period.  Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity similar to fully diluted earnings per share.  There were approximately 2,325,876,000 common stock equivalents outstanding at November 30, 2014, related to the convertible debt arrangements and an additional 25,000,000 options (with exercise price greater than market value as of November 30, 2014).  Due to losses, dilutive earnings per share is not presented, as the effect would be anti-dilutive.

Management_Statement_Regarding

Management Statement Regarding Going Concern	3 Months Ended
	Nov. 30, 2014
Management Statement Regarding Going Concern
Note 3. Management Statement Regarding Going Concern	The Company’s revenues are insufficient to meet its operating expenses. The Company has incurred net losses of $790,383 for the three months ending November 30, 2014. Accumulated losses resulted in an accumulated deficit of $12,103,386 as of November 30, 2014. The Company has a net working capital deficit of $4,540,149 and cash used in operations of $322,325 for the three month period ending November 30, 2014.  The total shareholders’ deficit at November 30, 2014 was $4,515,620. Due to the financial position, and given the current economic environment and the continuing need to strengthen our cash position, management believes that there is substantial doubt about the Company’s ability to continue as a going concern. Management is currently pursuing various funding options, including seeking debt or equity financing, licensing opportunities, as well as strategic other transactions, to obtain additional funding to continue the development of, and successfully commercialize, its products. There can be no assurance that the Company will be successful in its efforts and this raises substantial doubt about the Company’s future. Should the Company be unable to obtain adequate financing or generate sufficient revenue in the future, the Company’s business, results of operations, liquidity and financial condition would be materially and adversely harmed, and the Company would be unable to continue as a going concern.
	The Company believes that its ability to execute its business plan, and therefore continue as a going concern, is dependent upon its ability to do the following:
	·	Obtain adequate sources of funding to fund long-term business operations;
	·	Enter into a licensing or other relationship that allows the Company to commercialize its products;
	·	Manage or control working capital requirements; and
	·	Develop new and enhance existing relationships with product distributors and other points of distribution for the Company’s products.
	There can be no assurance that the Company will be successful in achieving its short- or long-term plans as set forth above, or that such plans, if consummated, will enable the Company to obtain profitable operations or continue in the long-term as a going concern.  The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Inventory

Inventory	3 Months Ended
	Nov. 30, 2014
DisclosureInventoryAbstract
Note 4. Inventory	As of November 30, 2014 and August 31, 2014, inventory consisted of physical copies of published books, as well as artwork used for digitally distributed works for advertising revenue and future publications. The inventory is valued at the lower of the cost to produce, on a first-in-first-out (FIFO) basis, or market value.

Convertible_Notes_Payable

Convertible Notes Payable	3 Months Ended
	Nov. 30, 2014
Convertible Notes Payable
Note 5. Convertible Notes Payable	The Company entered into several lending arrangements with lenders, each with convertible features. The Company evaluated the terms of the convertible notes in accordance with ASC Topic No. 815 - 40, Derivative and Hedging Contracts – Contracts in Entities’ Own Stock and the underlying conversion features that are indexed to the Company’s common stock. The Company determined that the conversion features meet the definition of a derivative liability and therefore bifurcated the conversion feature and accounted for it as a separate derivative liability. Therefore, the Company recorded a derivative liability and recognized a debt discount on the notes on the origination date. The debt discount was recorded as reduction (contra-liability) to the Convertible Notes Payable. The debt discount is being amortized over the life of the notes. Additionally, the notes called for an immediate withholding for service charges, which has been treated as an original issue discount or deferred financing costs, a contra-liability charge, which is amortized as finance cost over the life of the loan. Interest expense, in the amount of $259,249 and $193,811 was recognized for the amortization of derivative debt discounts and deferred financing costs for the period ended November 30, 2014 and 2013, respectively.
	A derivative liability, in the amount of $3,757,252 and $3,518,650 has been recorded, as of November 30, 2014 and August 31, 2014, respectively, related to the notes. The derivative value was calculated using the Black-Scholes method. Assumptions used in the derivative valuation were as follows:
	Weighted Average:
	Dividend rate		0	%
	Risk-free interest rate		0.08	%
	Expected lives (years)		0.092
	Expected price volatility		431.2	%
	Forfeiture Rate		0	%
	Summary of Convertible Notes Payable:
	Original remaining outstanding principal	$	724,283
	Unamortized deferred finance costs		-
	Unexpired debt discounts		(108,984	)
	Total		615,299
	Current portion of debt		615,299
	Long-term debt	$	-

Capital_Stock

Capital Stock	3 Months Ended
	Nov. 30, 2014
Capital Stock
Note 6. Capital Stock	Preferred Stock
	The Company has 100,000,000 shares of preferred stock authorized and designated a class of preferred stock as “Series Z.” Each Series Z Preferred Share is entitled to a liquidation preference equal to the original purchase price of the Series Z Preferred Shares ($0.03 per share). In addition, subject to the applicable rules and published guidance of a national securities exchange or automated inter-dealer quotation system on which our common stock may in the future be listed or quoted (the "Listing Rules"), and for so long as investor continues to hold Series Z Preferred Shares, the holder will be entitled to 100:1 super-voting rights on all matters submitted to a vote of our stockholders, subject to adjustment. The Company retains the option of redeeming the Series Z Shares to the extent that we reasonably determine that the above rights would impede our ability to be listed or quoted under the Listing Rules.
	As of November 6, 2014, the Company entered into a Securities Purchase Agreement (the "SPA") with Mark Fischbach under which we agreed to issue to Mr. Fischbach (i) 30,000,000 shares of our common stock (the "Common Shares"); and (ii) 5,000,000 shares of our proposed Series Z Preferred Stock, with rights, privileges and preferences as set forth above (the "Series Z Preferred Shares") (collectively with the Common Shares, the "Shares") for an aggregate price of $200,000 (the "Purchase Price"). We closed on this transaction on November 12, 2014. Mr. Fischbach is entitled appoint one member of our Board.  Mr. Fischbach has been appointed to our Board.
	As of November 30, 2014, we entered into an oral agreement with our director and officer Benny R. Powell under which we agreed to issue to Mr. Powell 5,000,000 shares of our Series Z Preferred Stock, with rights, privileges and preferences as set forth above in exchange for payment of $150,000.  As of November 30, 2014 $100,000 has been received and $50,000 was applied as a reduction of amounts payable to Mr. Powell.  The transaction closed in December 2014.
	Common Stock
	On April 16, 2015, the Company amended its Articles of Incorporation, increasing the number of authorized common shares to 6,000,000,000. All shares of common stock are non-assessable and non-cumulative, with no preemptive rights.  The balance sheet, as of November 30, 2014 retroactively reflects the authorized shares, as amended.
	During the year ending August 31, 2013. the Company entered into a stock buy-back plan, whereby 1,785,900 shares were repurchased for $55,000 cost. The shares remain in the name of the Company until such time as they are cancelled.
	During the three month period ending November 30, 2013, the Company issued 22,636,273 shares of its common stock in satisfaction of obligation to $60,000 of convertible notes payable. During the three month period ending November 30, 2014, the Company issued 127,426,480 shares of its common stock upon conversion in satisfaction of $52,717 of convertible notes payable at the contractual rate.  The shares issued were recorded at the quoted market price of the Company’s common stock at the date of conversion with the difference treated as a reduction to the derivative liability previously established for the convertible debt.

Related_Parties

Related Parties	3 Months Ended
	Nov. 30, 2014
Related Parties
Note 7. Related Parties	Benny Powell is an officer and director of Red Giant Entertainment, Inc., a Florida corporation, which is a subsidiary and operating company of Red Giant Entertainment, Inc., a Nevada corporation.
	The Company purchases print materials through Active Media Publishing, Inc. ("AMPI"), an entity wholly owned by Mr. Powell. AMPI has certain arrangements with overseas printing companies, whereby the printing is provided to the Company. The agreement with AMPI provides for printing at cost prices on a non-exclusive basis. During the quarterly period ended November 30, 2014 and 2013, the Company purchased print media in the amount of $0 and $3,750, respectively.
	Keenspot Entertainment, LLC, a company owned by our director Chris Crosby, has been paid or accrued commissions in the amount of approximately $684 and $917 during the quarterly period ended November 30, 2014 and 2013, respectively.
	The Company also from time to time has retained Glass House Graphics, a sole proprietorship owned by David Campiti, our Chief Operating Officer and a member of the Board, to provide creative services for us. The Company paid an aggregate of $68,500 and $12,575 to Glass House Graphics during the quarterly period ended November 30, 2014 and 2013, respectively.
	The Company does not have employment contracts with its controlling shareholder who also is the Company’s president and chief executive officer, although it has independent contractor agreements with its other officers.
	The amounts and terms of the above transactions may not necessarily be indicative of the amounts and terms that would have been incurred had comparable transactions been entered into with independent third parties.

Business_Segments

Business Segments	3 Months Ended
	Nov. 30, 2014
Business Segments
Note 8. Business Segments	The Company generates revenues from three service offerings: Advertising, Book publishing and Creative. The Company's management measures its performance by revenue lines and does not allocate its selling, general and administrative expenses to each revenue offering. A summary of the lines of revenue are as follows:
		November 30,
		2014		2013
	Revenues
	Advertising	$	837	$	1,284
	Book publishing		58		2,095
	Creative		-		-
	TOTAL:	$	895	$	3,379
	Cost of Sales
	Advertising	$	837	$	1,342
	Book publishing		-		1,036
	Creative		-		-
	TOTAL:	$	837	$	2,378
	Gross Margin
	Advertising	$	-	$	(58	)
	Book publishing		58		1,059
	Creative		-		-
	TOTAL:	$	58	$	1,001

Commitments_And_Contingencies

Commitments And Contingencies	3 Months Ended
	Nov. 30, 2014
Commitments And Contingencies
Note 9. Commitments And Contingencies	In the normal course of business, the Company may become a party to litigation matters involving claims against the Company.
	On May 13, 2013, George Sharp (“Plaintiff”) filed a Complaint in San Diego Superior Court, Central District, Case No. 37-2013-00048310-CU-MC-CTL, against 14 companies, including us (collectively, “Defendants”). We were served with the Complaint on May 23, 2013. The Complaint alleges that the Plaintiff received unsolicited promotional emails being sent by Defendant, Victory Mark Corp. Ltd., discussing the other 13 corporate Defendants, including us. The Plaintiff is seeking liquidated damages in the amount of $1,000 for each email he received for a total of $1,204,000 collectively for all Defendants. The Company is defending this action vigorously and believes that the matter is without legal merit. The Company cannot determine the ultimate outcome of this matter at this time.
	On November 5, 2014, we consented to a cease-and-desist order brought by the SEC.  The Order found that we failed to timely disclose a material financing arrangement, and that when we disclosed the arrangement, we used the wrong SEC form.  We are required to pay a $25,000 civil money penalty and to cease and desist from committing or causing any violations or any future violations of Section 13(a) of the Securities Exchange Act of 1934 and Rule 13a-11 thereunder.  The Order is available at www.sec.gov.  In the Matter of Red Giant Entertainment, Inc., SEC Admin. Proc. File No. 3-16249 (Nov. 5, 2014).
	Our convertible note agreements contain default provisions, which include the provision that we are in default if we are delinquent in our filings of our annual and quarterly reports.  As of December 15, 2014, the Company was in default under these provisions because we were delinquent in the filing of our annual report. We estimate these default costs will be approximately $224,000, which satisfaction will require additional issuance of common stock, in accordance with conversion terms of those agreements.  We estimate that an additional 598,176,000 shares of common stock will be required to be issued in satisfaction of these terms.

Subsequent_Events

Subsequent Events	3 Months Ended
	Nov. 30, 2014
Subsequent Events
Note 10. Subsequent Events	Subsequent to November 30, 2014, convertible debt holders converted approximately $103,250 in principal and interest in exchange for 291,112,163 shares of the Company's common stock.
	On April 16, 2015, the Company amended its Articles of Incorporation, increasing the number of authorized common shares to 6,000,000,000. All shares of common stock are non-assessable and non-cumulative, with no preemptive rights.  The balance sheet, as of November 30, 2014 retroactively reflects the authorized shares, as amended.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Nov. 30, 2014
Summary Of Significant Accounting Policies Policies
Basis of Presentation	The Company prepares its financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which require 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 reported amounts of revenues and expenses during the reporting period.  Significant estimates include the allowance for doubtful accounts, inventory valuation, useful lives and valuation of property and equipment and intangible assets, stock based compensation, derivative liabilities, and the deferred tax assets valuation allowance.  Actual results could differ from those estimates.
	The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X.  Accordingly, the financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.
	In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the financial statements presented not misleading.  The results of operations for such interim periods are not necessarily indicative of operations for a full year.
	These consolidated financial statements should be read in conjunction with the financial statements for the fiscal year ended August 31, 2014, and the notes thereto and other pertinent information contained in our Form 10-K filed with the Securities and Exchange Commission on April 6, 2015.
Principles of Consolidation	The Company operates under the name of Red Giant Entertainment, Inc. and its wholly owned subsidiaries RGE and ComicGenesis.  The companies were incorporated for the intentions of developing brand names.  Any activities of these subsidiaries or holdings have been included in the consolidated financial statements, with elimination of any intercompany accounts and transactions.
Fair Value Measurements	Topic 820 in the Accounting Standards Codification (ASC 820) defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements.  ASC 820 applies whenever other standards require (or permit) assets or liabilities to be measured at fair value but does not expand the use of fair value in any new circumstances.  In this standard, the FASB clarifies the principle that fair value should be based on the assumptions market participants would use when pricing the asset or liability.  In support of this principle, ASC 820 establishes a fair value hierarchy that prioritizes the information used to develop those assumptions.  The fair value hierarchy is as follows:
	·	Level 1 inputs — Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date.
	·	Level 2 inputs — Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.  These might include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals.
	·	Level 3 inputs — Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.
Cash Flow Reporting	The Company follows ASC 230, Statement of Cash Flows, for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (“Indirect method”) as defined by ASC 230, Statement of Cash Flows, to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments.
Cash and Cash Equivalents	For purposes of the statement of cash flows, the Company considers all highly liquid investments and short-term debt instruments with original maturities of three months or less to be cash equivalents. We had no cash equivalents during the years then ended.
Property and Equipment	Property and equipment are recorded at historical cost.  Depreciation is calculated on a straight-line basis over the estimated useful life of the asset. The Company currently has equipment being depreciated for estimated lives of three to five years.
Intangible Assets	Intangible assets, including intellectual property and a web site, have been recorded at their fair historical cost. Amortization is calculated on a straight-line basis over the estimated useful life of three years.  The Company periodically tests the carrying value for impairment as noted below.  As of November 30, 2014 and August 31, 2014, all intangible assets have been fully amortized or impaired.
Long-lived Assets Impairment	Long-lived assets of the Company are reviewed for impairment whenever events or circumstances indicate that the carrying amount of assets may not be recoverable, pursuant to guidance established in ASC 360, Property, Plant and Equipment.  Management considers assets to be impaired if the carrying value exceeds the future projected cash flows from related operations (undiscounted and without interest charges).  If impairment is deemed to exist, the assets will be written down to fair value.  Fair value is generally determined using a discounted cash flow analysis.
Revenue Recognition	Revenue for the Company is recognized from three primary sources: Advertising Revenue, Publishing Sales and Creative Services.  Revenue was processed through our Paypal Account and Project Wonderful accounts where applicable.
	Advertising Revenue comes from the following sources and is stated at net after commissions:
	·	Keenspot:  Revenue is earned on a net 90-day basis and is based upon traffic to Red Giant property Web sites.  It is calculated on a Cost Per Thousand (CPM) of verified impressions and varies based upon bids by advertisers and other customary factors.  In exchange for advertising, hosting, IT, and sales management, Keenspot takes 50% commission of ad revenue for their services.
	·	Project Wonderful: Revenue is recorded upon delivery of services and priced based upon bids by advertisers for a set amount of time at the prevailing highest winning rate.  Project Wonderful takes a 25% commission of ad revenue for their services.
	Publishing Revenue comes from the following sources:
	·	Kickstarter Campaigns:  These are presales for books, and revenue is recognized when the books are shipped to the buyers.
	·	Direct Sales:  Through our online store, we sell directly to clients and the transactions process through our Paypal account.  All orders are shipped immediately and revenue is recognized upon shipment.
	Creative Services are artwork, writing, advertising, and other creative endeavors we handle for outside clients.  Revenue is recognized upon completion of the services.
	Shipping and Handling for purchases are paid directly by the consumer through PayPal.
Cost of Sales	Cost of sales includes the cost of creating services or artwork, advertising and books.
Stock Based Compensation	The Company issues restricted stock to consultants for various services.  The costs for these transactions are measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable.  The value of the common stock is measured at the earlier of (i) the date at which a firm commitment for performance by the counterparty to earn the equity instruments is reached or (ii) the date at which the counterparty’s performance is complete.  The Company recognized consulting expenses and a corresponding increase to additional paid-in-capital related to stock issued for services. For agreements requiring future services, the consulting expense is to be recognized ratably over the requisite service period.
Income Taxes	The Company accounts for income taxes pursuant to the provisions of ASC 740-10,”Accounting for Income Taxes,” which requires, among other things, an asset and a liability approach to calculating deferred income taxes. The asset and liability approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. A valuation allowance is provided to offset any net deferred tax assets for which management believes it is more likely than not that the net deferred asset will not be realized.
	The Company follows the provisions of ASC 740-10 related to accounting for uncertain income tax positions. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the positions that would be ultimately sustained. In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable tax authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above should be reflected as a liability for uncertain tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company believes its tax positions are all highly certain of being upheld upon examination. As such, the Company has not recorded a liability for uncertain tax benefits.
	The Company has adopted ASC 740-10-25, Definition of Settlement, which provides guidance on how an entity should determine whether a tax position is effectively settled for the purpose of recognizing previously unrecognized tax benefits and provides that a tax position can be effectively settled upon the completion of an examination by a taxing authority without being legally extinguished. For tax positions considered effectively settled, an entity would recognize the full amount of tax benefit, even if the tax position is not considered more likely than not to be sustained based solely on the basis of its technical merits and the statute of limitations remains open.

Convertible_Notes_Payable_Tabl

Convertible Notes Payable (Tables)	3 Months Ended
	Nov. 30, 2014
Convertible Notes Payable Tables
Assumptions of derivative valuation	Weighted Average:
	Dividend rate		0	%
	Risk-free interest rate		0.08	%
	Expected lives (years)		0.092
	Expected price volatility		431.2	%
	Forfeiture Rate		0	%
Convertible notes and conversion features	Summary of Convertible Notes Payable:
	Original remaining outstanding principal	$	724,283
	Unamortized deferred finance costs		-
	Unexpired debt discounts		(108,984	)
	Total		615,299
	Current portion of debt		615,299
	Long-term debt	$	-

Business_Segments_Tables

Business Segments (Tables)	3 Months Ended
	Nov. 30, 2014
Business Segments Tables
Lines of revenue		November 30,
		2014		2013
	Revenues
	Advertising	$	837	$	1,284
	Book publishing		58		2,095
	Creative		-		-
	TOTAL:	$	895	$	3,379
	Cost of Sales
	Advertising	$	837	$	1,342
	Book publishing		-		1,036
	Creative		-		-
	TOTAL:	$	837	$	2,378
	Gross Margin
	Advertising	$	-	$	(58	)
	Book publishing		58		1,059
	Creative		-		-
	TOTAL:	$	58	$	1,001

Organization_and_Description_o1

Organization and Description of Business (Details Narrative)	3 Months Ended
	Nov. 30, 2014
Organization And Description Of Business Details Narrative
Company incorporated date	1-Jan-11
Company incorporated state	State of Florida

Summary_of_Significant_Account2

Summary of Significant Accounting Policies (Details Narrative) (USD $)	3 Months Ended
	Nov. 30, 2014	Nov. 30, 2013
Summary Of Significant Accounting Policies Details Narrative
Advertising costs	$0	$25,014
Common stock equivalents outstanding	2,325,876,000

Management_Statement_Regarding1

Management Statement Regarding Going Concern (Details Narrative) (USD $)	3 Months Ended
	Nov. 30, 2014	Nov. 30, 2013	Aug. 31, 2014
Management Statement Regarding Going Concern Details Narrative
Net loss	($790,383)	($430,021)
Accumulated deficit	-12,103,386		-11,313,003
Working capital deficit	-4,540,149
Cash used in operations	-322,325	-148,012
Total Stockholders' Deficit	($4,515,620)		($4,250,957)

Convertible_Notes_Payable_Deta

Convertible Notes Payable (Details)	3 Months Ended
	Nov. 30, 2014
Weighted Average
Dividend rate	0.00%
Risk-free interest rate	0.08%
Expected lives (years)	1 month 3 days
Expected price volatility	431.20%
Forfeiture Rate	0.00%

Convertible_Notes_Payable_Deta1

Convertible Notes Payable (Details 1) (USD $)	Nov. 30, 2014
Convertible Notes Payable Details 1
Original remaining outstanding principal	$724,283
Unamortized deferred finance costs
Unexpired debt discounts	-108,984
Total debt outstanding	615,299
Current portion of debt	615,299
Long-term debt

Convertible_Notes_Payable_Deta2

Convertible Notes Payable (Details Narrative) (USD $)	3 Months Ended
	Nov. 30, 2014	Nov. 30, 2013	Aug. 31, 2014
Convertible Notes Payable Details Narrative
Interest expense	($259,249)	($193,811)
Derivative liability	$3,757,252		$3,518,650

Capital_Stock_Details_Narrativ

Capital Stock (Details Narrative) (USD $)	Nov. 30, 2014
Exchange for the payment of preferred stock	$150,000
Payment received in connection with series Z preferred stock	100,000
Amount applied in reduction od amount of bseries Z preferred stock	50,000
Issuance of common stock in satisfaction of obligation	22,636,273
Convertible notes payable value	60,000
Issuance of common stock upon conversion in satisfaction	127,426,480
Convertible notes payable at the contractual rate	$52,717
Mr Powell [Member]
Series Z Preferred Stock, shares Issued	5,000,000

Related_Parties_Details_Narrat

Related Parties (Details Narrative) (USD $)	3 Months Ended
	Nov. 30, 2014	Nov. 30, 2013
Purchased print media	$0	$3,750
Paid to Glass House Graphics	68,500	12,575
Keenspot Entertainment, LLC [Member]
Accrued commissions	$684	$917

Business_Segments_Details

Business Segments (Details) (USD $)	3 Months Ended
	Nov. 30, 2014	Nov. 30, 2013
Revenues	$895	$3,379
Cost of sales	837	2,378
Gross Profit	58	1,001
Advertising [Member]
Revenues	837	1,284
Cost of sales	837	1,342
Gross Profit		-58
Book Publishing [Member]
Revenues	58	2,095
Cost of sales		1,036
Gross Profit	58	1,059
Creative [Member]
Revenues
Cost of sales
Gross Profit