Infinity Augmented Reality (ALSO) 10-Q 7 Jan 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Nov. 30, 2014	Jan. 07, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	Infinity Augmented Reality, Inc.
Entity Central Index Key	1421538
Amendment Flag	FALSE
Current Fiscal Year End Date	-23
Document Type	10-Q
Document Period End Date	30-Nov-14
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2015
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		94,960,687

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Nov. 30, 2014	Aug. 31, 2014
CURRENT ASSETS
Cash and cash equivalents	$1,163,005	$875,438
Prepaid expenses and other receivables	54,838	178,394
Total current assets	1,217,843	1,053,832
Property and equipment, net	76,356	84,885
Investment in Meta Company	50,000	50,000
TOTAL ASSETS	1,344,199	1,188,717
CURRENT LIABILITIES
Accounts payable and accrued expenses	51,342	191,046
Interest payable	77,165	54,871
Current liabilities of discontinued operations		27,835
Total current liabilities	128,507	273,752
Convertible debentures, net of debt discount	4,021,890	3,291,930
TOTAL LIABILITES	4,150,397	3,565,682
COMMITMENTS AND CONTINGENT LIABILITIES
STOCKHOLDERS' DEFICIT
Common stock ($ 0.00001 par value; 500,000,000 authorized; 95,316,155 issued and 94,960,687 outstanding at November 30, 2014 and at August 31, 2014	953	953
Additional paid in capital	64,944,798	63,866,965
Treasury stock, at cost 355,468 shares of common stock November 30, 2014 and August 31, 2014	-49,766	-49,766
Accumulated deficit	-67,648,485	-66,180,566
Accumulated other comprehensive loss	-53,698	-14,551
Total Stockholders' Deficit	-2,806,198	-2,376,965
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$1,344,199	$1,188,717

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Nov. 30, 2014	Aug. 31, 2014
Consolidated Balance Sheets [Abstract]
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	95,316,155	95,316,155
Common stock, shares outstanding	94,960,687	94,960,687
Treasury stock	355,468	355,468

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (USD $)	3 Months Ended
	Nov. 30, 2014	Nov. 30, 2013
Income Statement [Abstract]
Research and development	($182,075)	($344,799)
Marketing, general and administrative expenses	-1,034,063	-730,434
Total Operating expenses	-1,216,138	-1,075,233
Other expense
Foreign exchange gains		11,195
Interest expense	-251,780	-130,931
Net loss	-1,467,918	-1,194,969
Basic and diluted loss per common share
Net loss per common share	($0.01)	($0.01)
Basic weighted average shares outstanding	100,960,687	99,281,941
Diluted weighted average shares outstanding	100,960,687	99,281,941
Net loss	-1,467,918	-1,194,969
Foreign currency translation adjustments	-39,147	-5,801
Comprehensive loss	($1,507,065)	($1,200,770)

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
	Nov. 30, 2014	Nov. 30, 2013
Operating activities:
Net loss	($1,467,918)	($1,194,969)
Adjustments to reconcile net loss to net cash (used in) provided by operations
Amortization of debt discount	229,106	117,228
Stock-based compensation	828,688	21,638
Foreign exchange gain on investment in subsidiary		-11,195
Loss on disposition of equipment		25,385
Depreciation	8,591	9,491
Changes in operating assets and liabilities
Prepaid expenses and other receivables and long-term receivables	116,272	-30,074
Accounts payable and accrued expenses	-138,084	-11,122
Interest payable	22,293	7,420
Net cash used in operating activities- continuing operations	-401,052	-1,066,198
Net cash used in operating activities- discontinued operations	-22,987
Net cash used in operating activities	-424,039	-1,066,198
Investing activities:
Purchase of property and equipment	-7,004	-59,039
Net cash used in investing activities	-7,004	-59,039
Financing activities:
Proceeds from convertible debentures	750,000	1,000,000
Proceeds from exercise of stock options		39,926
Net cash provided by financing activities	750,000	1,039,926
Effect of exchange rate on cash and cash equivalents	-31,390	2,941
Change in cash and cash equivalents	287,567	-82,370
Cash and cash equivalents, beginning	875,438	431,760
Cash and cash equivalents of continuing operations, ending	1,163,005	349,390
Warrants issued in connection with convertible debentures	249,145	370,153
Fair value of conversion option		$554,240

Nature_and_Continuance_of_Oper

Nature and Continuance of Operations	3 Months Ended
	Nov. 30, 2014
Nature and Continuance of Operations [Abstract]
NATURE AND CONTINUANCE OF OPERATIONS	NOTE 1:	NATURE AND CONTINUANCE OF OPERATIONS
	Infinity Augmented Reality, Inc. (formerly known as Absolute Life Solutions, Inc.) (the “Company”) was originally incorporated as Shimmer Gold, Inc. in the State of Nevada on September 7, 2006. The Company was in the business of the acquisition and exploration of mineral resources during the period from September 7, 2006 to May 21, 2010. Subsequently, a majority of our shareholders approved an amendment to our Articles of Incorporation changing our name to Absolute Life Solutions, Inc. During the fiscal year ended August 31, 2010, the Company commenced operations as a specialty financial services company engaged in the business of purchasing life settlement contracts for long-term investment purposes. Effective November 15, 2012, the Company is no longer engaged in its prior primary activity as a specialty financial services company primarily engaged in the purchase of life settlement contracts. In May 2012, we formed a wholly-owned subsidiary Infinity Augmented Reality, LLC, (“IAR Subsidiary”), and commenced activities to enable it to be actively engaged in the development of software applications which will utilize augmented reality. Effective March 7, 2013, the Company changed its name from Absolute Life Solutions, Inc. to Infinity Augmented Reality, Inc. On that same date, IAR Subsidiary was merged into the Company. Effective June 30, 2013, the Company formed a wholly owned Israeli subsidiary, Infinity Augmented Reality Israel Ltd. (“Infinity Israel”).
	The Company is actively engaged in the development of an augmented reality software platform which will provide end users with a fully three dimensional (3D), interactive augmented reality experience with full hand controls and a completely natural user interface. Augmented reality, (”AR”), is a technology which allows the projection of visual content that the viewer perceives as a real life experience and allows the viewer to intuitively interact with augmented content in his or her physical surroundings. The Company’s technology platform is made up of computer vision algorithms which will interface with any hardware including mobile or wearable devices, that have two dimensional (2D) stereoscopic cameras. The Company’s technology will turn such hardware into a powerful content augmentation platform. The Company’s technology will be usable both outdoors and indoors and will feature a lower power consumption.
	The Company is developing three software development kits, or SDKs, which will serve as the core platform for augmented reality software developers and wearable device manufacturers. The Company’s solution is designed to assist application developers in easily and efficiently developing advanced augmented reality applications, in a shorter time-to-market, while still providing a rich augmented reality experience.
	The continued existence of the Company is dependent upon its ability to generate profit from its augmented reality business and to meet its obligations as they become due. If additional cash is needed, the Company intends to finance the future capital required for continued operations from a combination of traditional debt and equity markets. However, there is no assurance that (a) traditional debt and equity markets may be accessible as required, or if so, on acceptable terms and, or (b) the demand for and selling prices of the Company’s augmented reality products, may not be sufficient to meet cash flow expectations. The outcome of these matters cannot be predicted with certainty and therefore the Company may not be able to continue or expand operations as planned. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These unaudited financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern.

Significant_Accounting_Policie

Significant Accounting Policies	3 Months Ended
	Nov. 30, 2014
Significant Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2:	SIGNIFICANT ACCOUNTING POLICIES
	Basis of Presentation
	The accompanying unaudited condensed consolidated financial statements as of November 30, 2014 and for the three months ended November 30, 2014 and 2013 have been prepared in accordance with the accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 8 of Regulation S-X of the Securities and Exchange Commission (“SEC”) and on the same basis as the annual audited financial statements. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions are eliminated in the consolidation process. The unaudited condensed consolidated Balance Sheet as of November 30, 2014, condensed consolidated Statements of Operations and Comprehensive loss for the three months ended November 30, 2014 and 2013, and condensed consolidated Statements of Cash Flows for the three months ended November 30, 2014 and 2013, are unaudited, but include all adjustments, consisting only of normal recurring adjustments, which the Company considers necessary for a fair presentation of the financial position, operating results and cash flows for the period presented. The results for the three months ended November 30, 2014 are not necessarily indicative of results to be expected for the year ending August 31, 2015 or for any future interim period. In addition, the balance sheet data at August 31, 2014 was derived from the audited financial statements but does not include all disclosures required by GAAP. The accompanying financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on November 26, 2014.
	Use of Estimates
	The preparation of financial statements in conformity with GAAP requires 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 the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company's estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. The most significant estimates with regard to these financial statements relate to the value of warrants and options and deferred income tax amounts and rates and timing of the reversal of income tax differences.
	Loss per Share
	Basic loss per share is calculated using the weighted average number of shares of common stock outstanding during the period. Included in basic loss per share calculations for each period presented are the effects of 6,000,000 warrants exercisable at $0.01. Diluted earnings per share reflect the potential dilution that could occur if potentially dilutive securities were exercised or converted to common stock. The dilutive effect of options and warrants and their equivalent is computed by application of the treasury stock method and the effect of convertible securities by the "if converted" method. As of November 30, 2014, 88,148,344 shares of common stock, comprised of 31,174,172 convertible debentures with a conversion price of $0.25, 31,174,172 warrants with an exercise price of $0.50, and stock options exercisable into 25,800,000 common shares are not included in diluted loss per share since their effect would be anti-dilutive.As of November 30, 2013, 45,751,084 shares of common stock, comprised of 11,710,172 convertible debentures with a conversion price of $0.25, 11,710,172 warrants with an exercise price of $0.50, and stock options exercisable into 22,330,740 common shares are not included in diluted loss per share since their effect would be anti-dilutive.
	Stock-Based Compensation
	The Company records stock-based compensation expense in accordance with ASC 718, Compensation - Stock Compensation. The Company expenses stock-based compensation to employees over the requisite service period based on the estimated grant-date fair value of the awards and forfeiture rates. For stock-based compensation awards to non-employees, the Company re-measures the fair value of the non-employee awards at each reporting period prior to vesting and finally at the vesting date of the award. The assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment.
	Valuation Assumptions
	The Company estimates the fair value of stock option grants using a Black-Scholes option pricing model. In applying this model, the Company uses the following assumptions:
		„	Risk-Free Interest Rate: The Company determined the risk-free interest rate equivalent to the expected term based on the U.S. Treasury constant maturity rate.
		„	Expected Volatility: The Company determined its future stock price volatility based on the average historical stock price volatility of comparable peer companies.
		„	Expected Term: Due to the limited exercise history of the Company’s stock options, the Company determined the expected term based on the stratification of employee groups and the expected effect of events that have indications on future exercise activity. Expected life for options granted to employees uses the Simplified Method, while options granted to non-employees uses an expected term equal to the life of the contract.
		„	Expected Dividend Rate: The Company has not paid and does not anticipate paying any cash dividends in the near future.
	The fair value of each option award was estimated on the grant date using the Black Scholes option-pricing model and expensed under the straight line method. The following assumptions were used:
				Three Months ended	Three Months ended
				November 30, 2014	November 30, 2013
		Exercise price		-	$0.29 - $0.35
		Expected stock price volatility		-	66.3% - 73.8%
		Risk-free rate of interest		-	1.31% - 1.72%
		Expected life of options		-	3-3.5 Years
	Recent Accounting Pronouncements
	In November 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-17, Pushdown Accounting. This ASU provides companies with the option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. The election to apply pushdown accounting can be made either in the period in which the change of control occurred, or in a subsequent period. This ASU is effective as of November 18, 2014. The adoption will not have a material impact on the Company’s results of operations, cash flows or financial position
	In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, as a new Topic, Accounting Standards Codification (ASC) Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU is effective for annual periods beginning after December 15, 2016 (fiscal 2018) and shall be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is evaluating the effect of adopting this new accounting guidance but does not expect adoption will have a material impact on the Company’s results of operations, cash flows or financial position.
	In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This ASU raises the threshold for a disposal to qualify as discontinued operations and requires new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation. Under the new standard, companies report discontinued operations when they have a disposal that represents a strategic shift that has or will have a major impact on operations or financial results. This update will be applied prospectively and is effective for annual periods, and interim periods within those years, beginning after December 15, 2014 (fiscal 2016). Early adoption is permitted provided the disposal was not previously disclosed. This update will not have a material impact on the Company's reported results of operations and financial position. The impact is non-cash in nature and will not affect the Company's cash position
	Other pronouncements issued by the FASB or other authoritative accounting standards groups with future effective dates are either not applicable or are not expected to be significant to the condensed financial statements of the Company.

Convertible_Debentures

Convertible Debentures	3 Months Ended
	Nov. 30, 2014
Convertible Debentures [Abstract]
CONVERTIBLE DEBENTURES	NOTE 3:	CONVERTIBLE DEBENTURES
	During the three months ended November 30, 2014, the Company issued a (i) five-year Convertible Series A-14 Debentures (the “A-14 Debentures”) for an aggregate principal amount of $750,000, bearing interest at 1.2% per annum, convertible into shares of common stock, at a conversion price of $0.25, and (ii) a five-year Warrant (the “2014 Warrants”) to purchase 3,000,000 shares of common stock, to Credit Strategies, LLC (the “Lead Investor”), pursuant to Securities Purchase Agreements dated March 26, 2014 (the “2014 SPA”).
	The Company accounts for the beneficial conversion feature (“BCF”) and warrant valuation in accordance with ASC 470-20, Debt with Conversion and Other Options. The Company records a BCF related to the issuance of convertible debt that has conversion features at fixed rates that are “in-the-money” when issued and the fair value of warrants issued in connection with those instruments. The BCF for the convertible instruments is recognized and measured by allocating a portion of the proceeds to warrants, based on their relative fair value, and as a reduction to the carrying amount of the convertible debt equal to the intrinsic value of the conversion feature. The discount recorded in connection with the BCF and warrant valuation is recognized as non-cash interest expense and is amortized over the terms of the convertible notes.
	During the three months ended November 30, 2014, the Company recorded an aggregate of $249,145 for the calculated fair value of 2014 Warrants and BCF, in conjunction with A-14 Debentures issued on September 15 and November 7, 2014.
	The Company valued the warrants at the date the warrants were issued, using the Black-Scholes valuation model and the following assumptions:
			September 15, 2014			November 7, 2014
		Contractual term (Years)		5			5
		Volatility		139.6	%		162.5	%
		Dividend yield		0	%		0	%
		Risk-free interest rate		1.8	%		1.6	%
			November 30, 2014			December 31, 2014
		1.2% convertible debentures		7,793,543			7,043,543
		Debt discount/ beneficial conversion feature		(3,771,653	)		(3,751,613	)
		Balance	$	4,021,890		$	3,291,930

Commitments_and_Contingent_Lia

Commitments and Contingent Liabilities	3 Months Ended
	Nov. 30, 2014
Commitments and Contingent Liabilities [Abstract]
COMMITMENTS AND CONTINGENT LIABILITIES	NOTE 4:	COMMITMENTS AND CONTINGENT LIABILITIES
	With respect to the Company’s prior activities in the life insurance settlement business, the Company recently joined as a defendant in a lawsuit captioned as CMS Life Ins. Opportunity Fund L.P., et al. v. Progressive Capital Solutions in the New York State Supreme Court, New York County. The intervening plaintiffs, Genesis Merchant Partners, LP and Genesis Merchant Partners II, LP (collectively, “Genesis”), claim that the Company owned certain unidentified "Life Settlement" insurance policies, that are subject to Genesis' rights.
	Genesis is seeking declaratory and injunctive relief (but no money damages). The Company exited the life settlement insurance business in November 2012 and does not own or claim any rights in any such life settlement insurance policies. Accordingly, the Company believes that the claims are frivolous and intends to vigorously defend against the allegations. The Company has filed a motion to dismiss all of the claims against the Company and the Plaintiff has filed an opposition to the motion to dismiss. The Court is expected to rule on the motion to dismiss in the coming months.
	On November 27, 2013, Infinity Israel received a pre lawsuit claim letter from the legal representative of a former employee. The compensation amount sought by the former employee as per his pre lawsuit claim letter was approximately 202,000 NIS (approximately $57,780). During the year ended August 31, 2014 Infinity Israel and the former employee agreed to the settlement of the Claim by a lump sum payment of 50,000 NIS (approximately $14,300) by Infinity Israel to the former employee and, on January 26, 2014 the board of directors approved the issuance to the former employee of options to purchase up to 218,750 shares of the Company’s Common Stock under the Company’s 2013 Equity Incentive Plan at an exercise price of $0.25 per share, which options were forfeited on June 23, 2014. The fair value of this grant was $31,311.

Warrants_and_Stock_Options

Warrants and Stock Options	3 Months Ended
	Nov. 30, 2014
Warrants and Stock Options [Abstract]
WARRANTS AND STOCK OPTIONS	NOTE 5:	WARRANTS AND STOCK OPTIONS
	Warrants
	Warrant transactions are summarized as follows:
			Number of warrants		Weighted		Weighted average life remaining
					average		(in years)
					exercise
					price
		Balance as at August 31, 2014 - Issued		34,174,172		0.41		3.97 years
		Additions as of November 30, 2014 - Issued		3,000,000		0.5		4.86 years
		Balance as at November 30, 2014		37,174,172		0.42		3.60 years
	As of November 30, 2014, there were 37,174,172 warrants outstanding and exercisable with expiration dates from June 2015 through November 2019.
	Stock options
	The following table summarizes the stock-based compensation expense from stock option, employee stock purchase programs and restricted Common Stock awards for the Three months ended November 30, 2014 and 2013:
			Three months ended November 30,
			2014		2013
		Employee awards	$	828,688	$	4,644
		Non- employee awards, net of forfeitures		-		16,994
		Total stock options compensation expense	$	828,688	$	21,638
	No options were granted during the three months ended November 30, 2014.

Subsequent_Events

Subsequent Events	3 Months Ended
	Nov. 30, 2014
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 6:	SUBSEQUENT EVENTS
	On December 7, 2014, the Board of Directors granted to an Infinity Israel employee 50,000 Non-Qualified Stock Options with an exercise price of $0.07, vesting semiannually over the next 3 years and expiring on December 7, 2019.
	The Company evaluates events that have occurred after the balance sheet date through the date the financial statements were publicly available. Based upon the evaluation, the Company did not identify any other recognized or non-recognized subsequent events that would have required adjustment to or disclosure in the financial statements.

Significant_Accounting_Policie1

Significant Accounting Policies (Policies)	3 Months Ended
	Nov. 30, 2014
Significant Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation
	The accompanying unaudited condensed consolidated financial statements as of November 30, 2014 and for the three months ended November 30, 2014 and 2013 have been prepared in accordance with the accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 8 of Regulation S-X of the Securities and Exchange Commission (“SEC”) and on the same basis as the annual audited financial statements. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions are eliminated in the consolidation process. The unaudited condensed consolidated Balance Sheet as of November 30, 2014, condensed consolidated Statements of Operations and Comprehensive loss for the three months ended November 30, 2014 and 2013, and condensed consolidated Statements of Cash Flows for the three months ended November 30, 2014 and 2013, are unaudited, but include all adjustments, consisting only of normal recurring adjustments, which the Company considers necessary for a fair presentation of the financial position, operating results and cash flows for the period presented. The results for the three months ended November 30, 2014 are not necessarily indicative of results to be expected for the year ending August 31, 2015 or for any future interim period. In addition, the balance sheet data at August 31, 2014 was derived from the audited financial statements but does not include all disclosures required by GAAP. The accompanying financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on November 26, 2014.
Use of Estimates	Use of Estimates
	The preparation of financial statements in conformity with GAAP requires 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 the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company's estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. The most significant estimates with regard to these financial statements relate to the value of warrants and options and deferred income tax amounts and rates and timing of the reversal of income tax differences.
Loss per Share	Loss per Share
	Basic loss per share is calculated using the weighted average number of shares of common stock outstanding during the period. Included in basic loss per share calculations for each period presented are the effects of 6,000,000 warrants exercisable at $0.01. Diluted earnings per share reflect the potential dilution that could occur if potentially dilutive securities were exercised or converted to common stock. The dilutive effect of options and warrants and their equivalent is computed by application of the treasury stock method and the effect of convertible securities by the "if converted" method. As of November 30, 2014, 88,148,344 shares of common stock, comprised of 31,174,172 convertible debentures with a conversion price of $0.25, 31,174,172 warrants with an exercise price of $0.50, and stock options exercisable into 25,800,000 common shares are not included in diluted loss per share since their effect would be anti-dilutive. As of November 30, 2013, 45,751,084 shares of common stock, comprised of 11,710,172 convertible debentures with a conversion price of $0.25, 11,710,172 warrants with an exercise price of $0.50, and stock options exercisable into 22,330,740 common shares are not included in diluted loss per share since their effect would be anti-dilutive.
Stock-Based Compensation	Stock-Based Compensation
	The Company records stock-based compensation expense in accordance with ASC 718, Compensation - Stock Compensation. The Company expenses stock-based compensation to employees over the requisite service period based on the estimated grant-date fair value of the awards and forfeiture rates. For stock-based compensation awards to non-employees, the Company re-measures the fair value of the non-employee awards at each reporting period prior to vesting and finally at the vesting date of the award. The assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment.
Valuation Assumptions	Valuation Assumptions
	The Company estimates the fair value of stock option grants using a Black-Scholes option pricing model. In applying this model, the Company uses the following assumptions:
		„	Risk-Free Interest Rate: The Company determined the risk-free interest rate equivalent to the expected term based on the U.S. Treasury constant maturity rate.
		„	Expected Volatility: The Company determined its future stock price volatility based on the average historical stock price volatility of comparable peer companies.
		„	Expected Term: Due to the limited exercise history of the Company’s stock options, the Company determined the expected term based on the stratification of employee groups and the expected effect of events that have indications on future exercise activity. Expected life for options granted to employees uses the Simplified Method, while options granted to non-employees uses an expected term equal to the life of the contract.
		„	Expected Dividend Rate: The Company has not paid and does not anticipate paying any cash dividends in the near future.
	The fair value of each option award was estimated on the grant date using the Black Scholes option-pricing model and expensed under the straight line method. The following assumptions were used:
				Three Months ended	Three Months ended
				November 30, 2014	November 30, 2013
		Exercise price		-	$0.29 - $0.35
		Expected stock price volatility		-	66.3% - 73.8%
		Risk-free rate of interest		-	1.31% - 1.72%
		Expected life of options		-	3-3.5 Years
Recent Accounting Pronouncements	Recent Accounting Pronouncements
	In November 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-17, Pushdown Accounting. This ASU provides companies with the option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. The election to apply pushdown accounting can be made either in the period in which the change of control occurred, or in a subsequent period. This ASU is effective as of November 18, 2014. The adoption will not have a material impact on the Company’s results of operations, cash flows or financial position
	In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, as a new Topic, Accounting Standards Codification (ASC) Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU is effective for annual periods beginning after December 15, 2016 (fiscal 2018) and shall be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is evaluating the effect of adopting this new accounting guidance but does not expect adoption will have a material impact on the Company’s results of operations, cash flows or financial position.
	In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This ASU raises the threshold for a disposal to qualify as discontinued operations and requires new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation. Under the new standard, companies report discontinued operations when they have a disposal that represents a strategic shift that has or will have a major impact on operations or financial results. This update will be applied prospectively and is effective for annual periods, and interim periods within those years, beginning after December 15, 2014 (fiscal 2016). Early adoption is permitted provided the disposal was not previously disclosed. This update will not have a material impact on the Company's reported results of operations and financial position. The impact is non-cash in nature and will not affect the Company's cash position
	Other pronouncements issued by the FASB or other authoritative accounting standards groups with future effective dates are either not applicable or are not expected to be significant to the condensed financial statements of the Company.

Significant_Accounting_Policie2

Significant Accounting Policies (Tables)	3 Months Ended
	Nov. 30, 2014
Significant Accounting Policies [Abstract]
Fair value of option award was estimated on the grant date using the Black Scholes option-pricing model			Three Months ended	Three Months ended
			November 30, 2014	November 30, 2013
		Exercise price	-	$0.29 - $0.35
		Expected stock price volatility	-	66.3% - 73.8%
		Risk-free rate of interest	-	1.31% - 1.72%
		Expected life of options	-	3-3.5 Years

Convertible_Debentures_Tables

Convertible Debentures (Tables)	3 Months Ended
	Nov. 30, 2014
Convertible Debentures [Abstract]
Schedule of warrant valuation assumptions			September 15, 2014			November 7, 2014
		Contractual term (Years)		5			5
		Volatility		139.6	%		162.5	%
		Dividend yield		0	%		0	%
		Risk-free interest rate		1.8	%		1.6	%
Schedule of senior convertible notes			November 30, 2014			December 31, 2014
		1.2% convertible debentures		7,793,543			7,043,543
		Debt discount/ beneficial conversion feature		(3,771,653	)		(3,751,613	)
		Balance	$	4,021,890		$	3,291,930

Warrants_and_Stock_Options_Tab

Warrants and Stock Options (Tables)	3 Months Ended
	Nov. 30, 2014
Warrants and Stock Options [Abstract]
Schedule of warrant transactions			Number of warrants		Weighted		Weighted average life remaining
					average		(in years)
					exercise
					price
		Balance as at August 31, 2014 - Issued		34,174,172		0.41		3.97 years
		Additions as of November 30, 2014 - Issued		3,000,000		0.5		4.86 years
		Balance as at November 30, 2014		37,174,172		0.42		3.60 years
Schedule of stock-based compensation expense			Three months ended November 30,
			2014		2013
		Employee awards	$	828,688	$	4,644
		Non- employee awards, net of forfeitures		-		16,994
		Total stock options compensation expense	$	828,688	$	21,638

Significant_Accounting_Policie3

Significant Accounting Policies (Details) (USD $)	3 Months Ended
	Nov. 30, 2014	Nov. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price
Expected stock price volatility, minimum		66.30%
Expected stock price volatility, maximum		73.80%
Risk-free rate of interest, minimum		1.31%
Risk-free rate of interest, maximum		1.72%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price		0.29
Expected life of options		3 years
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price		0.35
Expected life of options		3 years 6 months

Significant_Accounting_Policie4

Significant Accounting Policies (Details Textual) (USD $)	3 Months Ended
	Nov. 30, 2014	Nov. 30, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Warrants exercisable	6,000,000
Exercise price of warrants	0.01
Common stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities not included in computation of earnings per common share	88,148,344	45,751,084
Convertible Debentures [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities not included in computation of earnings per common share	31,174,172	11,710,172
Conversion price	0.25	0.25
Stock option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities not included in computation of earnings per common share	25,800,000	22,330,740
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities not included in computation of earnings per common share	31,174,172	11,710,172
Exercise price of warrants	0.5	0.5

Convertible_Debentures_Details

Convertible Debentures (Details) (Warrant [Member])	3 Months Ended
	Nov. 30, 2014
Issued on September 15, 2014 [Member]
Class of Warrant or Right [Line Items]
Contractual term (Years)	5 years
Volatility	139.60%
Dividend yield	0.00%
Risk-free interest rate	1.80%
Issued on November 07, 2014 [Member]
Class of Warrant or Right [Line Items]
Contractual term (Years)	5 years
Volatility	162.50%
Dividend yield	0.00%
Risk-free interest rate	1.60%

Convertible_Debentures_Details1

Convertible Debentures (Details 1) (USD $)	Nov. 30, 2014	Aug. 31, 2014	Dec. 31, 2014
Debt Instrument, Redemption [Line Items]
1.2% convertible debentures	$7,793,543
Debt discount/ beneficial conversion feature	-3,771,653
Balance	4,021,890	3,291,930
Subsequent Event [Member]
Debt Instrument, Redemption [Line Items]
1.2% convertible debentures			7,043,543
Debt discount/ beneficial conversion feature			-3,751,613
Balance			$3,291,930

Convertible_Debentures_Details2

Convertible Debentures (Details Textual) (USD $)	3 Months Ended
	Nov. 30, 2014
Convertible Debentures (Textual)
Aggregate principal amount	$7,793,543
Aggregate fair value of warrants and beneficial conversion feature	249,145
Credit Strategies Llc [Member]
Convertible Debentures (Textual)
Aggregate principal amount	$750,000
Term	5 years
Interest rate	1.20%
Conversion price	$0.25
Term of warrants	5 years
Number of shares available for warrants exercised	3,000,000

Commitments_and_Contingent_Lia1

Commitments and Contingent Liabilities (Details)	0 Months Ended		12 Months Ended		0 Months Ended
	Nov. 27, 2013	Nov. 27, 2013	Aug. 31, 2014	Aug. 31, 2014	Jan. 26, 2014
	USD ($)	ILS	USD ($)	ILS	2013 Plan [Member]
					USD ($)
Commitments and Contingent Liabilities (Textual)
Common stock issued to former employee					218,750
Exercise price					$0.25
Stock option, expiration date					23-Jun-14
Options granted, fair value					$31,311
Lawsuit settlement, Amount	$57,780	202,000	$14,300	50,000

Warrants_and_Stock_Options_Det

Warrants and Stock Options (Details) (Warrant [Member], USD $)	3 Months Ended	12 Months Ended
	Nov. 30, 2014	Aug. 31, 2014
Warrant [Member]
Number of warrants
Balance	34,174,172
Issued	3,000,000
Balance	37,174,172	34,174,172
Weighted average exercise price
Balance	$0.41
Issued	$0.50
Balance	$0.42	$0.41
Weighted average life remaining (in years)
Balance	3 years 7 months 6 days	3 years 11 months 19 days
Issued	4 years 10 months 10 days

Warrants_and_Stock_Options_Det1

Warrants and Stock Options (Details 1) (USD $)	3 Months Ended
	Nov. 30, 2014	Nov. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock options compensation expense	$828,688	$21,638
Employee awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock options compensation expense	828,688	4,644
Non-Employee Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock options compensation expense		$16,994

Warrants_and_Stock_Options_Det2

Warrants and Stock Options (Details Textual)	Nov. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants outstanding and exercisable	37,174,172

Subsequent_Events_Details

Subsequent Events (Details) (Subsequent Event [Member], Infinity Israel Employee [Member], USD $)	0 Months Ended
	Dec. 07, 2014
Subsequent Event [Member] | Infinity Israel Employee [Member]
Subsequent Events (Textual)
Stock option granted	50,000
Stock options exercise price	$0.07
Vesting period	3 years
Stock option, expiration date	7-Dec-19