Total Sports Media (TSMI) 10-Q 14 Apr 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Feb. 29, 2016	Apr. 01, 2016
Document And Entity Information
Entity Registrant Name	Streamtrack, Inc.
Entity Central Index Key	1,442,376
Document Type	10-Q
Document Period End Date	Feb. 29, 2016
Amendment Flag	false
Current Fiscal Year End Date	--08-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		4,190,265,983
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Feb. 29, 2016	Aug. 31, 2015
Current assets:
Cash	$ 14,741	$ 7,909
Accounts receivable, net of allowances of $6,000 and $6,000, respectively	105,217	114,253
Prepaid expenses	3,349	2,196
Total current assets	123,307	124,358
Property and equipment, net	535,964	660,973
Other assets
Other assets	$ 41,865	$ 56,613
Due from intercompany
Total other assets	$ 41,865	$ 56,613
Total assets	701,136	841,944
Current liabilities:
Accounts payable and accrued expenses	1,037,871	1,147,249
Line of credit	896,884	610,950
Derivative liability embedded within convertible note payable	526,779	898,856
Capital lease payable - in default	54,704	54,704
Related party payables	187,310	159,660
Convertible notes payable, net of discount of $57,459 and $19,794, respectively	821,258	739,798
Related party convertible notes payable, net of discount of $255,215 and $0, respectively	673,249	197,850
Total current liabilities	4,198,055	3,809,067
Long term liabilities
Convertible notes payable, net of discount of $58,137 and $155,249, respectively	98,669	115,907
Related party convertible notes payable, net of discount of $0 and $442,744, respectively	225,500	428,370
Total long term liabilities	324,169	544,277
Total liabilities	4,522,224	4,353,344
Series C preferred stock; $0.0001 par value; 20,000 shares authorized; 11,690 and 11,800 shares issued and outstanding as of February 29, 2016 and August 31, 2015	$ 1,690,500	$ 1,770,000
Commitments and contingencies (note 5)
Stockholders' Deficit:
Series A preferred stock; $0.0001 par value; 100 shares authorized; 0 shares issued and outstanding as of February 29, 2016 and August 31, 2015
Series B preferred stock; $0.0001 par value; 200,000 shares authorized; 200,000 shares issued and outstanding as of February 29, 2016 and August 31, 2015	$ 20	$ 20
Common stock, $0.0001 par value; Unlimited shares authorized at February 29, 2016 and August 31, 2015; 4,198,519,796 shares issued and outstanding at February 29, 2016; 3,403,519,796 shares issued and outstanding as of August 31, 2015	419,852	340,352
Additional paid-in capital	$ 3,341,837	$ 3,341,837
Common stock to be issued	87,500	75,000
Accumulated deficit	$ (9,360,797)	$ (9,038,609)
Total stockholders' deficit	(5,511,588)	(5,281,400)
Total liabilities and stockholders' deficit	$ 701,136	$ 841,944

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Feb. 29, 2016	Aug. 31, 2015
Assets
Accounts receivable, net of allowances	$ 6,000	$ 6,000
Current liabilities:
Convertible notes payable, net of discount	57,459	19,794
Related party convertible notes payable, net of debt discount	255,215	0
Long term liabilities
Convertible notes payable, net of discount	58,137	155,249
Related party convertible promissory notes, net of debt discount	$ 0	$ 442,744
Stockholders' deficit:
Preferred stock series C, par value	$ 0.0001	$ 0.0001
Preferred stock series C, Authorized	20,000	20,000
Preferred stock series C, Issued	11,690	11,800
Preferred stock series C, outstanding	11,690	11,800
Preferred stock series A, par value	$ 0.0001	$ 0.0001
Preferred stock series A, Authorized	100	100
Preferred stock series A, Issued	0	0
Preferred stock series A, outstanding	0	0
Preferred stock series B, par value	$ 0.0001	$ 0.0001
Preferred stock series B, Authorized	200,000	200,000
Preferred stock series B, Issued	200,000	200,000
Preferred stock series B, outstanding	200,000	200,000
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, Authorized
Common stock, Issued	4,198,519,796	3,403,519,796
Common stock, outstanding	4,198,519,796	3,403,519,796

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Revenue
Advertising	$ 161,306	$ 209,286	$ 335,331	$ 518,394
Services	8,588	8,250	16,838	19,250
Total revenue	169,894	217,536	352,169	537,644
Costs of revenues:
Media network	$ 87,287	86,001	$ 157,553	191,583
Depreciation and amortization		9,340		77,986
Colocation services	$ 7,564	38,334	$ 13,700	76,668
Broadcaster commissions	16,032	21,804	27,562	66,935
Other costs	851	928	1,125	3,382
Total costs of revenues	111,734	156,407	199,940	416,554
Gross profit	$ 58,160	$ 61,129	$ 152,229	121,090
Operating expenses
Consulting fees
Professional fees
Product development	$ 138	$ 5,250	$ 210	14,249
Officer compensation	$ 25,000	$ 10,499	$ 50,000	58,499
Rents
Sales and marketing	$ 7,050	$ 36,129	$ 12,798	76,978
Bad debts
Other expenses	$ 254,169	$ 221,150	$ 535,664	438,509
Total operating expenses	286,357	273,028	598,672	588,235
Loss from operations	$ (228,197)	(211,899)	$ (446,443)	(467,145)
Other income (expense):
Other income (expense)		(30,224)		(56,681)
Interest expense (including accretion of debt discount of $123,486, $209,191, $246,976 and $331,760, respectively)	$ (204,306)	$ (300,178)	$ (423,814)	$ (495,305)
Gain on sale of co-location and domain	$ 175,992		$ 175,992
Loss on extinguishment		$ (66,537)		$ (66,537)
Change in fair value of derivatives	$ 368,195	4,850,179	$ 372,077	274,204
Total other income (expense)	339,881	4,453,240	124,255	(344,319)
Income (loss) before provision for income taxes	$ 111,684	$ 4,241,341	$ (322,188)	(811,464)
Provision for income taxes
Net income (loss)	$ 111,684	$ 4,241,341	$ (322,188)	$ (811,464)
Basic and diluted net loss per common share attributable to common stockholders	$ 0	$ 0.01	$ 0	$ 0
Diluted net income (loss) per common share attributable to common stockholders	$ 0	$ 0	$ 0	$ 0
Weighted-average number of shares used in computing basic and diluted per share amounts	3,990,827,488	746,259,588	3,708,052,763	520,396,235
Weighted-average number of shares used in computing dilutive per share amounts	25,161,122,177	20,028,323,474	3,708,052,763	520,396,235

Consolidated Statements of Ope5

Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Consolidated Statements Of Operations Parenthetical
Accretion of debt discount	$ 123,486	$ 209,191	$ 246,976	$ 331,760

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Feb. 29, 2016	Feb. 28, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (322,188)	$ (811,464)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	155,272	204,764
Re-measurement of derivative liabilities	(372,077)	(274,204)
Accretion of debt discount	$ 246,976	331,760
Stock issued for services and finance fees		56,241
Amortization of finance fees		$ 5,144
Gain on sale of co-location and domain	$ (175,992)
Loss on extinguishment of debt		$ 66,537
Changes in operating assets and liabilities:
Accounts receivable	$ 9,036	114,413
Prepaid expenses	$ (1,153)	$ 6,347
Note receivable
Other current assets		$ (5,678)
Accounts payable and accrued expenses	$ (104,603)	209,187
Related party accrued liabilities	27,650	101,862
Net cash used in operating activities	(537,079)	4,909
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase or development of property and equipment	(19,503)	$ (308,114)
Proceeds from sale of co-location and domain	$ 179,980
Other assets		$ (5,500)
Net cash used in investing activities	$ 160,477	(313,614)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of convertible promissory notes		115,000
Payments on related party notes payable		(89,284)
Note receivable		(5,250)
Proceeds from line of credit	$ 285,934	12,390
Payments on capital lease		(4,500)
Proceeds from issuance of convertible promissory notes - related parties	$ 85,000	$ 261,750
Proceeds from sale of common stock / common stock to be issued	12,500
Net cash provided by financing activities	383,434	$ 290,106
Change in cash and cash equivalents	6,832	(18,599)
Cash and cash equivalents, beginning of period	7,909	26,590
Cash and cash equivalents, end of period	14,741	$ 7,991
Supplemental disclosures of cash flow information
Cash paid for interest	$ 5,728
Cash paid for income taxes
Non cash investing and financing activities:
Issuance of common stock for conversion of debt and accrued interest		$ 130,576
Conversion of Series C preferred stock in common stock	$ 79,500
Beneficial conversion feature recorded on convertible debt		$ 938,614
Issuance of common stock for accounts payable		165,231
Increase in line of credit for facility fee	$ 2,500	$ 45,000

Nature of Business

Nature of Business	6 Months Ended
	Feb. 29, 2016
Notes to Financial Statements
Note 1 - Nature of Business	StreamTrack, Inc. (the "Company") is a digital media and technology services company. The Company provides audio and video streaming and advertising services through its RadioLoyaltyTM Platform (the "Platform") to over 5,000 internet and terrestrial radio stations and other broadcast content providers. The Platform consists of a web-based and mobile player that manages streaming audio and video content, social media engagement, display and video ad serving within the web player and is also capable of replacing audio ads with video ads within the web player in a live or on-demand environment. The Company offers the Platform directly to its broadcasters and integrates or white labels its technologies with web-based internet radio guides and other web-based content providers. The Company is also developing Amped Fantasy and SportsAlert™, a fantasy sports product. The Company was incorporated as a Wyoming corporation on May 6, 2008. Basis of Presentation The accompanying interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission ("SEC"), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company's Form 10-K for year ended August 31, 2015. In the opinion of management, all adjustments necessary in order for the consolidated financial statements to be not misleading have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year ended August 31, 2016. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, StreamTrack Media, Inc. and RadioLoyalty, Inc., California corporations. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of the Company's management, the consolidated financial statements include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the Company's financial position for the periods presented. Going Concern The Company's financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. For the six months ended February 29, 2016, the Company recorded an operating loss of $446,443 and a net loss of $322,188. As of February 29, 2016, the Company had a working capital deficit of $4,074,748, which excluding the derivative liability was $3,547,969. The net loss and negative working capital indicate substantial doubt about the Company's ability to continue as a going concern. Management is confident but cannot guarantee that the Company will be able to raise additional capital in order to repay debts and continue operations. For fiscal 2016 the Company is obligated to make payments on certain operating leases, convertible debts, and a capital lease, among others. The Company's normal operating costs are also significant and include consulting fees, professional fees, product development costs and marketing and sales costs associated with management's business plan. Since inception and through the date of these financial statements, the Company has successfully raised a significant amount of capital through debt and equity offerings. The Company anticipates launching several new product offerings and initiating certain new significant partnerships during the fiscal year ending August 31, 2016. The Company anticipates those products and partnerships to be profitable but notes that it will require an unknown amount of capital for product development and commercial deployment. The Company will attempt to have its potential partners pay for the some of these costs but management cannot be certain that it will succeed in entering into such arrangements. Management may potentially make a business decision to move forward, delay, or cancel certain partnerships because of the Company's overall capital needs. Nonetheless, the ability of the Company to continue as a going concern is dependent on the successful execution of the business plan and become profitable. If the Company is unable to become profitable and achieve and sustain positive cash flow from operations, the Company could be forced to modify its business operations or possibly cease operations entirely. Management cannot provide any assurances that the Company will be successful in its operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. Estimates are used for determining the allowance for doubtful accounts, stock-based compensation, fair values of warrants to purchase common stock, derivative liabilities and income taxes. To the extent there are material differences between these estimates, judgments, or assumptions and actual results, the Company's financial statements could be affected. In many cases, the accounting treatment of a particular transaction is specifically dictated by U.S. GAAP and does not require management's judgment in its application. There are also areas in which management's judgment in selecting among available alternatives would not produce a materially different result. Net Loss Per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including convertible debt instruments, preferred stock, restricted stock unit grants and detachable stock warrants. Basic and diluted net loss per share was the same for the six months ended February 29, 2016 and February 28, 2015 presented as the inclusion of all potential common shares outstanding would have been anti-dilutive. The following is the calculation of dilutive shares for the three months ended February 29, 2016 and February 28, 2015: For the Three For the Three Months Ended Months Ended February 29, February 25, 2016 2015 Weighted-average common shares outstanding used in computing basic net income per share: 3,990,827,488 968,543,899 Common stock equivalents: Creditor #2 Notes 7,113,490,910 7,310,800,000 Creditor #3 Notes 1,244,666,667 1,504,666,667 Vendor note - 85,000,000 Convertible promissory notes 12,695,237,112 9,477,494,726 Series C Preferred Stock 116,900,000 681,818,182 Weighted-average common shares outstanding used in computing dilutive net income per share: 25,161,122,177 20,028,323,474 The following is the reconciliation of net income used in the calculation of the dilutive income per share for the three months ended February 29, 2016 and February 28, 2015: For the Three For the Three Months Ended Months Ended February 29, February 28, 2016 2015 Net income available to common stock holders: $ 111,684 $ 4,241,341 Adjustments: Accrued interest on convertible notes 28,320 128,113 Accretion of discount on convertible notes 123,486 331,760 Net income used in the calculation of the dilutive income per share: $ 263,490 $ 4,701,214 Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, "Revenue from Contracts with Customers", which supersedes most of the current revenue recognition requirements. The core principle of the new guidance is that an entity 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 these goods or services. New disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers are also required. This guidance is effective for the Company in the first quarter of fiscal year 2018 and early application is not permitted. Entities must adopt the new guidance using one of two retrospective application methods. The Company is currently evaluating the standard but does not expect it to have a material impact on our financial position, results of operations or cash flows. In August 2014, the FASB issued ASU 2014-15, which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if "conditions or events raise substantial doubt about the entity's ability to continue as a going concern." The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The Financial Accounting Standards Board issues Accounting Standard Updates ("ASUs") to amend the authoritative literature in Accounting Standards Codification ("ASC"). There have been a number of ASUs to date that amend the original text of ASC. The Company believes those issued to date either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to the Company or (iv) are not expected to have a significant impact on the Company.

Composition of Certain Financia

Composition of Certain Financial Statement Captions	6 Months Ended
	Feb. 29, 2016
Notes to Financial Statements
Note 2 - Composition of Certain Financial Statement Captions	Property and Equipment Property and equipment consisted of the following: February 29, 2016 August 31, 2015 Software $ 1,805,483 $ 1,775,220 Servers, computers, and other related equipment 153,824 198,924 Leasehold improvements 1,675 1,675 2,004,996 1,975,819 Less accumulated depreciation and amortization (1,425,018 ) (1,314,846 ) Property and equipment, net $ 535,964 $ 660,973 Depreciation expense totaled $155,272 and $204,764 for the six months ended February 29, 2016 and 2015, respectively. There have been no write-offs or impairments of property and equipment since the Company's inception on November 30, 2011. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following: February 29, 2016 August 31, 2015 Accounts payable $ 698,095 $ 751,129 Accrued interest 240,607 184,007 Accrued broadcaster commissions 90,510 92,304 Credit card 17,659 120,049 Accounts payable and accrued expenses $ 1,037,871 $ 1,147,489

Fair Value

Fair Value	6 Months Ended
	Feb. 29, 2016
Notes to Financial Statements
Note 3 - Fair Value	Fair value is an exit price, representing the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Fair value measurements are required to be disclosed by level within the following fair value hierarchy: Level 1– Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 – Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument's anticipated life. Level 3 – Inputs lack observable market data to corroborate management's estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. When determining fair value, whenever possible the Company uses observable market data, and relies on unobservable inputs only when observable market data is not available. Fair-value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of February 29, 2016 and August 31, 2015. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include cash, accounts receivable, prepaids, accounts payable, accrued liabilities, notes payable, and convertible notes payable. Fair values for these items were assumed to approximate carrying values because of their short term in nature or they are payable on demand. The fair value of these financial assets and liabilities was determined using the following inputs: Fair Value Measurement Using Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair values as of February 29, 2016 Liabilities: Derivative liabilities $ - $ 526,779 - $ 526,779 Total liabilities measured at fair value $ - $ 526,779 - $ 526,779 Fair values as of August 31, 2015 Liabilities: Derivative liabilities - $ 898,856 - $ 898,856 Total liabilities measured at fair value $ - $ 898,856 - $ 898,856

Asset Acquisition _ Disposition

Asset Acquisition / Disposition	6 Months Ended
	Feb. 29, 2016
Notes to Financial Statements
Note 4 - Asset Acquisition / Disposition	Asset Acquisitions On April 24, 2015, the Company, entered into an Asset Purchase Agreement with Lux Digital Pictures GmbH Partners ("Lux") pursuant to which, the Company issued 800 shares of Series C Convertible Preferred Stock for the rights to various domains, source codes, etc related to Lux's Sports Alert and Amped Fantasy Sports products. The Company determined the price of the Series C issued to be $120,000 based upon the conversion value of $150 worth of common stock for each share of Series C. The Company recorded the value of the asset as software within property and equipment on the accompanying consolidated balance sheets. The Company capitalized the value of the Series C as the products received were near completion and needed limited modification prior to being placing into production. The expected life of the asset acquired was estimated to be 36 months. Asset Disposition On February 19, 2016, the Company, entered into and closed an Asset Purchase Agreement with Electric Lightwave, LLC ("Electric Lightwave"), a wholly owned subsidiary of Integra Telecom Holdings, Inc. pursuant to which, Electric Lightwave purchased from the Company certain assets related to the Company's data center located in Santa Barbara, including equipment and inventory, for a purchase price of $150,000. As of the date of the sale all the assets were fully depreciated. In connection with the transaction, the Company recorded a gain of $146,012, as rent deposit of $3,988 was transferred as part of the sale, which is recorded within gain on sale of co-location and domain on the accompanying statement of operations.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Feb. 29, 2016
Notes to Financial Statements
Note 5 - Commitments and Contingencies	On October 23, 2013, the Superior Court in the Judicial District of Danbury, Connecticut entered an order approving the stipulation of the parties (the "Stipulation") in the matter of ASC Recap LLC ("ASC") v. StreamTrack, Inc. Under the Stipulation, the Company agreed to issue, as settlement of liabilities owed by the Company to ASC in the aggregate amount of $766,288 (the "Claim Amount"), shares of common stock (the "Settlement Shares") as follows: (a) In one or more tranches as necessary, 3,740,000 shares of common stock (the "Initial Issuance") and an additional 200,000 shares of common stock as a settlement fee. (b) Through the Initial Issuance and any required additional issuances, that number of shares of common stock with an aggregate value equal to (A) the sum of (i) the Claim Amount and (ii) reasonable attorney fees and trade execution fees in the amount of $75,000, divided by (B) the Purchase Price (defined under the Stipulation as the market price (defined as the lowest closing bid price of the Company's common stock during the valuation period set forth in the Stipulation) less the product of the Discount (equal to 25%) and the market price. The parties reasonably estimated that the fair market value of the Settlement Shares and all other amounts to be received by ASC is equal to approximately $1,100,000. (c) If at any time during the valuation period the closing bid price of the Company's common stock is below 90% of the closing bid price on the day before an issuance date, the Company will immediately cause to be issued to ASC such additional shares as may be required to effect the purposes of the Stipulation. (d) Notwithstanding anything to the contrary in the Stipulation, the number of shares beneficially owned by ASC will not exceed 9.99% of the Company's outstanding common stock. In connection with the Settlement Shares, the Company relied on the exemption from registration provided by Section 3(a)(10) under the Securities Act. In connection with the settlement, during the six months ended February 28, 2015 the Company issued 223,423,000 shares of common stock to ASC in which gross proceeds of $221,472 were generated from the sale of the common shares. In connection with the transaction, ASC received fees of $56,681 and provided payments of $164,791 to settle outstanding vendor payables. There were no shares issued to ASC during the six months ended February 29, 2016. The remaining amount on the settlement of liabilities owed by the Company to ASC is in the aggregate amount of $151,290 as of February 29, 2016. The Company cannot reasonably estimate the amount of proceeds ASC expects to receive from the sale of these shares which will be used to satisfy the liabilities. Thus, the Company accounts for the transaction as the shares are sold and the liabilities are settled. All amounts are included within accounts payable. Shares which are held by ASC at each reporting period are accounted for as issued but not outstanding. Legal Proceedings The Company is potentially subject to various legal proceedings and claims arising in the ordinary course of its business. There are no pending legal proceedings against the Company as of the date of these financial statements.

Capital Lease

Capital Lease	6 Months Ended
	Feb. 29, 2016
Notes to Financial Statements
Note 6 - Capital Lease	On March 22, 2013, the Company reached a settlement and release agreement with IBM Credit, LLC, ("IBM") the lessor associated with the Company's computer servers and software classified under capital lease. The balance owed to IBM as of March 22, 2013 was agreed to be $108,704. The Company agreed to make payments of $9,000 per month, with a final payment of $9,704 on March 1, 2014, in order to satisfy this balance. As of February 29, 2016 and August 31, 2015, the Company was in default of this agreement and the amount outstanding of $54,704 is reflected as a current liability on the accompanying consolidated balance sheets.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Feb. 29, 2016
Notes to Financial Statements
Note 7 - Related Party Transactions	The Company has only been operating since November 30, 2011. As a result, the Company has an extremely limited credit history. The Company's Chief Executive Officer, and the Chief Executive Officer of StreamTrack Media, Inc. (the "Executives") frequently use their personal credit cards to fund the Company's operations. If the Company did not have access to these credit cards, the Company would have to rely exclusively on external sources of capital. The Company's external sources of capital are not always readily available. As a result, in time-constrained circumstances, such use of personal credit cards is necessary until such time as the Company establishes its own credit-worthiness and is able to more readily accesssignificant credit. The related party payable as of February 29, 2016 and August 31, 2015 consists of unpaid compensation and non-interest bearing cash advances and charges on personal credit lines made on behalf of the Company by the Executives. The balances owed to the Executives are not secured and are due on demand. Interest will be charged on these balances based upon effective credit card rates. During the three months ended February 28, 2015, the Executives converted a significant portion of amounts due to them for unpaid compensation and other advances to long-term convertible notes payable, see Note 8 for additional information. In addition, the Executives agreed to a temporary reduction in their annual salary from $240,000 to $50,000 per year for the period from December 1, 2014 to December 1, 2015. As of February 29, 2016 and August 31, 2015, amounts due to these Executive related to accrued compensation and advances were $187,310 and $159,660, respectively. See Notes 8 and 10 for additional related party transactions.

Debt Instruments

Debt Instruments	6 Months Ended
	Feb. 29, 2016
Notes to Financial Statements
Note 8 - Debt Instruments	Asset-Based Debt Financing On April 11, 2013, the Company executed a non-dilutive asset-based debt financing (the "Lender Financing") with a third party (the "Lender"). The Lender Financing for a line of credit, secured by all of the Company's assets. The Company's management also executed limited recourse guarantees with the Lender. Interest is payable monthly based on a floating interest rate determined based on a formula outlined in detail within the financing agreement. The Company anticipates the effective monthly interest rate charged on the outstanding balance owed to the third party will be between 3.2% and 1.1%. On January 22, 2016, the Company executed an addendum to the Lender Financing agreement whereby the maturity date has been extended to December 15, 2016 with interest calculated at Prime plus 15.25% per year. In the event the facility is (i) below $750,000 prior to March 15, 2016 the interest rate shall be Prime plus 12.5%; and (ii) below $500,000 prior to June 15, 2016 the interest rate shall be Prime plus 10%. Vendor Convertible Note On November 1, 2012, the Company issued a convertible note for $140,000 (the "Vendor Note") to a former Vendor ("Vendor"). The Vendor Note was immediately convertible into the Company's common stock at a 50% discount to the lowest bid price for the five days prior to the conversion date. As of August 31, 2015, the note was fully converted. Creditor #2 Convertible Promissory Notes In April 2014, the Creditor entered into an exchange agreement with another lender (the "Creditor #2") whereby the Creditor transferred the Creditor's notes and accrued interest to Creditor #2. In April, the Company entered into i) a note agreement for $284,560 representing amounts transferred from the Creditor; ii) two $125,000 notes in which the proceeds were received on the same date (collectively referred to as the "Creditor #2 Notes") with Creditor #2. The Creditor #2 Notes bear interest per year at 10.0%, payable six months after the issuance date and are convertible on the date of issuance based upon based upon a 45% discount to lowest trading price, for the 15 trading days prior to conversion. As a result, the lower the stock price at the time the Creditor #2 converts the Creditor #2 Notes, the more common shares the Creditor #2 will receive. There were no conversions during the six months ended February 29, 2016 and thus the remaining principal balance was $391,242 as of February 29, 2016 and August 31, 2015. To the extent the Creditor #2 converts the Creditor #2 Notes and then sells its common stock, the market price of the common stock may decrease due to the additional shares in the market. This could allow the Creditor #2 to receive greater amounts of common stock upon conversion. The sale of each share of common stock could further depress the stock price. Due to the floating conversion price of the notes, the Company does not know the exact number of shares that the Creditor #2 may be issued upon conversion. The shares issuable upon conversion of the Creditor #2 Notes may result in substantial dilution to the interests of the Company's other shareholders. In this regard, even though the investor may not hold shares amounting to more than 9.99% of the outstanding shares at one time, this restriction does not prevent the investor from selling some of its holdings and then receiving additional shares. In this way, the investor could sell more than the 9.99% limit while never holding more than the limit. During the six months ended February 28, 2015, the Company amortized a discount of $62,500 to interest expense. As of August 31, 2015, the discount was fully amortized. Creditor #3 Convertible Promissory Note In December 2014, a convertible promissory note holder ("Holder") entered into an exchange agreement with another lender (the "Creditor #3") whereby the Holder transferred the Holder's notes and accrued interest to Creditor #3. In December 2014, the Company entered into a note agreement for $150,000 representing the principal amount transferred from the Holder. The Creditor #3 Note bears interest per year at 10.0%, due on August 22, 2015 and is convertible on the date of issuance based upon based upon a 25% discount to lowest trading price, for the 5 trading days prior to conversion. As a result, the lower the stock price at the time the Creditor #3 converts the Creditor #3 Notes, the more common shares the Creditor #3 will receive. There were no conversions during the six months ended February 29, 2016 and thus the remaining principal balance was $93,350 as of February 29, 2016 and August 31, 2015. To the extent the Creditor #3 converts the Creditor #3 Note and then sells its common stock, the market price of the common stock may decrease due to the additional shares in the market. This could allow the Creditor #3 to receive greater amounts of common stock upon conversion. The sale of each share of common stock could further depress the stock price. Due to the floating conversion price of the notes, the Company does not know the exact number of shares that the Creditor #3 may be issued upon conversion. The shares issuable upon conversion of the Creditor #3 Note may result in substantial dilution to the interests of the Company's other shareholders. In this regard, even though the investor may not hold shares amounting to more than 4.99% of the outstanding shares at one time, this restriction does not prevent the investor from selling some of its holdings and then receiving additional shares. In this way, the investor could sell more than the 4.99% limit while never holding more than the limit. Upon issuance, the Company recorded a discount of $150,000 due to the derivative liability, as discussed below in Note 9, having a fair market value in excess of the principal amount of the convertible note. As of August 31, 2015, the discount was fully amortized. Convertible Promissory Notes As of February 29, 2016 and August 31, 2015, the Company has outstanding 38 and 33 convertible promissory notes respectively issued between December 2011 and September 2015. The convertible promissory notes bear interest at either 4% or 8% per year and are due in full, including principal and interest, two-three years from the issuance date ranging from August 2014 to February 2018. The convertible promissory notes also include a conversion option whereby the holders may elect at any time to convert any portion or the entire balance into the Company's common stock at conversion prices ranging from $0.0001 to $1.25. There were no transactions in which impacted the convertible notes payable during the six months ended February 29, 2016, other than the accrual of interest. As of February 29, 2016 and August 31, 2015, the balance of convertible notes payable was $1,702,120 and $1,615,120 respectively. As of February 29, 2016 and August 31, 2015, convertible promissory notes outstanding of $1,153,964 and $1,068,964 respectively, are held by related parties. These related parties consist of the Company's officers, former officers, significant shareholders or entities controlled by these individuals. As of February 29, 2016 and August 31, 2015, $928,464 and $197,850, respectively, of these notes were included within the current portion of convertible promissory notes on the accompanying balance sheet as the note was due within one year of the balance sheet. For some of the convertible promissory notes, the conversion feature associated with the convertible promissory notes provide for a rate of conversion that is below market value. This conversion feature is accounted for as a beneficial conversion feature. A beneficial conversion feature was recorded and classified as a debt discount on the balance sheet at the time of issuance of each convertible promissory note with a corresponding credit to additional paid-in capital. In addition, six of the convertible promissory note purchasers were issued warrants to purchase shares of the Company's common stock. The valuation of the stock warrants and the beneficial conversion feature associated with the issuance of convertible promissory notes utilized valuation inputs and related figures provided by a professional and independent valuation firm. The Company allocated a portion of the proceeds received from the convertible promissory notes to the warrants using the relative fair value resulting in a debt discount to each convertible promissory note. The discounts are amortized over the term of the convertible promissory note using the straight line method. The amortized value for each period is recorded as an offset against the debt discount on the balance sheet, classified as interest expense. During the six months ended February 29, 2016 and 2015, $246,976 and $191,755 of the discounts were amortized to interest expense, respectively. As of February 29, 2016, $370,811 discounts remained which will be expensed in fiscal 2016 through 2018. Future Maturities As of August 31, 2015, future maturities of notes payable is as follows for the years ending August 31; $957,442 current; $1,067,270 2017; and $75,000 2018. Included within those amounts due to related parties are: $197,820 current and $871,114 for 2017.

Derivatives

Derivatives	6 Months Ended
	Feb. 29, 2016
Derivatives
Note 9 - Derivatives	Creditor #2 Note The Creditor #2 Notes were executed on April 15, 2014 and were immediately convertible into the Company's common stock at a 45% discount to the lowest trading price for the 15 days prior to the conversion date. As a result of the fact that the number of shares the Creditor #2 Notes was convertible into was indeterminable, the Company determined a derivative liability was embedded within the Creditor #2 Notes. The Company measured the derivative liability using the input attributes disclosed below and recorded a derivative liability of $3,158,190 as of April 15, 2014 of which $1,219,891 was included within "change in fair value of derivatives" due to a portion of the derivative liability being in excess of the $250,000 in proceeds received and $1,481,723, which included offset of $206,576 from relief of the derivative liability related to the Creditor Notes, within "Loss on extinguishment" due to extinguishment accounting on the Creditor Note transferred to Creditor #2. On February 29, 2016, the Company re-measured the derivative liability using the input attributes below and determined the value to be $351,191 of which $255,507 was classified as income within "change in fair value of derivatives" and was recorded for the six months ended February 29, 2016 in the statement of operations. February 29, August 31, 2016 2015 Expected life (in years) 0.50 0.50 Balance of note outstanding $ 391,242 $ 391,242 Stock price $ 0.0001 $ 0.0001 Effective conversion price $ 0.00005 $ 0.00005 Shares issuable upon conversion 7,113,490,909 7,113,490,909 Risk-free interest rate 0.49 % 0.50 % Expected volatility 90.00 % 361.00 % Expected dividend yield - - Creditor #3 Note The Creditor #3 Note was immediately convertible into the Company's common stock at a 25% discount to the lowest traded price for the five days prior to the conversion date. As a result of the fact that the number of shares the Creditor #3 is convertible into is indeterminable, the Company determined a derivative liability was embedded within the Creditor #3. The Company measured the derivative liability using the input attributes disclosed below and recorded a derivative liability of $50,000 as of December 24, 2014. As a result of the valuation of the derivative liability being in excess of the value of the carrying value of Creditor #3 by $50,000, a loss on derivative liability of $50,000 was recorded by the Company. On February 29, 2016, the Company re-measured the derivative liability using the input attributes below and determined the value to be $45,494 of which $57,315 was classified as income within "change in fair value of derivatives" and was recorded for the six months ended February 29, 2016 in the statement of operations. February 29, August 31, 2016 2015 Expected life (in years) 0.50 0.50 Balance of note outstanding $ 93,350 $ 93,350 Stock price $ 0.0001 $ 0.0001 Effective conversion price $ 0.000075 $ 0.000075 Shares issuable upon conversion 1,244,666,667 1,244,666,667 Risk-free interest rate 0.49 % 0.50 % Expected volatility 90.00 % 361.00 % Expected dividend yield - - Other Notes with Adjustable Conversion Features As discussed in Note 8, on December 24, 2014 the Company issued a $72,890 promissory note to a third party. The convertible promissory note was immediately convertible into the Company's common stock at a 10% discount to the lowest traded price for the five days prior to the conversion date. As a result of the fact that the number of shares the promissory note is convertible into is indeterminable, the Company determined a derivative liability was embedded within the promissory note. The Company measured the derivative liability using the input attributes disclosed below and recorded a derivative liability of $94,487 as of December 24, 2014. As a result of the valuation of the derivative liability being in excess of the value of the carrying value of convertible promissory note by $21,597, a loss on derivative liability of $21,597 was recorded by the Company. In addition, on March 17, 2015 the Company received an additional $41,459 in proceeds under the promissory note. On March 17, 2015, the Company recorded an additional derivative liability of $69,098, resulting in a loss on derivative liability of $27,639. On February 29, 2016, the Company re-measured the derivative liability using the input attributes below and determined the value to be $82,625 of which $40,941 was classified as income within "change in fair value of derivatives" and was recorded for the six months ended February 29, 2016 in the statement of operations. February 29, August 31, 2016 2015 Expected life (in years) 0.90 1.40 Balance of note outstanding $ 114,350 $ 114,350 Stock price $ 0.0001 $ 0.0001 Effective conversion price $ 0.00009 $ 0.00009 Shares issuable upon conversion 1,270,555,556 1,270,555,556 Risk-free interest rate 0.62 % 0.50 % Expected volatility 189.00 % 369.00 % Expected dividend yield - - As discussed in Note 8, on April 28, 2015 the Company issued a $56,806 promissory note to a third party. The convertible promissory note was immediately convertible into the Company's common stock at a 15% discount to the lowest traded price for the five days prior to the conversion date. As a result of the fact that the number of shares the promissory note is convertible into is indeterminable, the Company determined a derivative liability was embedded within the promissory note. The Company measured the derivative liability using the input attributes disclosed below and recorded a derivative liability of $66,831 as of April 28, 2015. On February 29, 2016, the Company re-measured the derivative liability using the input attributes below and determined the value to be $47,472 of which $18,312 was classified as income within "change in fair value of derivatives" and was recorded for the six months ended February 29, 2016 in the statement of operations. February 29, August 31, 2016 2015 Expected life (in years) 1.17 1.40 Balance of note outstanding $ 56,806 $ 56,806 Stock price $ 0.0001 $ 0.0001 Effective conversion price $ 0.000085 $ 0.000085 Shares issuable upon conversion 668,305,882 668,305,882 Risk-free interest rate 0.62 % 0.50 % Expected volatility 189.00 % 369.00 % Expected dividend yield - -

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Feb. 29, 2016
Notes to Financial Statements
Note 10 - Stockholders' Equity	Series A Preferred Stock Each share of Series A Preferred Stock has voting rights equal to the voting equivalent of the common stock into which it is convertible at the time of the vote. The holders of the Series A Preferred Stock are not entitled to dividends. The Series A Preferred Stock has no preferential rights to the Company's common stock and will share in any liquidation proceeds with the common stock on an as converted basis. No shares of Series A Preferred Stock are outstanding as of February 29, 2016. Series B Preferred Stock On October 25, 2013, the Company filed a Certificate of Designation of Series B Preferred Stock (the "Series B Certificate of Designation") with the Secretary of State of Wyoming. Pursuant to the Series B Certificate of Designation, the Company designated 200,000 shares of its blank check preferred stock as Series B Preferred Stock. The Series B Preferred Stock ranks senior to the common stock, Series A Preferred Stock and any subsequently created series of preferred stock that does not expressly rank pari passu with or senior to the Series B Preferred Stock (the "Junior Stock"). The Series B Preferred Stock is not be entitled to dividends. In the event of a liquidation, the Series B Preferred Stock will be entitled to a payment of the Stated Value of $1.00 per share prior to any payments being made in respect of the Junior Stock. Each share of Series B Preferred Stock entitles the holder to vote on all matters voted on by holders of common stock as a single class. With respect to any such vote, each share of Series B Preferred Stock entitles the holder to cast such number of votes equal to 0.000255% of the total number of votes entitled to be cast. Effective upon the closing of a Qualified Financing, all issued and outstanding shares of Series B Preferred Stock will automatically convert into common stock in an amount determined by dividing the product of the number of shares being converted and the Stated Value by the Conversion Price. The Conversion Price will be equal to the price per share of the common stock sold under the Qualified Financing (or, if the Qualified Financing involves the sale of securities convertible into common stock, by the conversion price of such convertible securities). A "Qualified Financing" is defined as the sale by the Company in a single offering of common stock or securities convertible into common stock for gross proceeds of at least $5,000,000. On October 31, 2013, the Company entered into amendment, waiver and exchange agreements (the "Exchange Agreements") with Michael Hill (the Company's chief executive officer and director) and Aaron Gravitz (the Company's director). Under each Exchange Agreement, the Company issued to each of Mr. Hill and Mr. Gravitz 100,000 shares of Series B Preferred Stock in exchange for $100,000 in unpaid compensation. Series C Preferred Stock Effective December 29, 2014, the Company filed a Certificate of Designation of Series C Convertible Preferred Stock (the "Series C") with the Secretary of State of Wyoming. Pursuant to the Series C, the Company designated 20,000 shares of its blank check preferred stock as Series C Preferred Stock. Each share of Series C is convertible into $150 in fair market value of the Company's common stock, which fair market value will be equal to the average closing price of the common stock on the over-the-counter market during the 10 trading days immediately prior to the delivery to the Company of a conversion notice. The Series C will share in any liquidation proceeds with the common stock on an as-converted basis, will not have voting rights prior to being converted to common stock, and in the event of any payment of dividends by the Company, will be entitled to dividends on an as-converted basis with the common stock. The Company has presented the Series C outside of stockholders' equity due to the variable conversion price. On April 24, 2015, the Company entered into an Exchange Agreement with Lux pursuant to which the Company issued 10,000 shares of its Series C in exchange for 1,495,313 shares of Company common stock tendered by Lux to the Company for cancellation. The Lux common stock was originally issued to Lux by the Company on March 12, 2013. In connection with the transaction, the Company recorded a loss on settlement of $1,499,850, which represented the difference in the fair market value of the Series C issued of $1.5 million and the common stock received of $150. See Note 4 for additional transaction with Lux. On April 24, 2015, the Company entered into an Exchange Agreement with Mark J. Richardson ("MJR") pursuant to which the Company issued 500 shares of its Series C in exchange for 15,140 shares of Company common stock tendered by MJR to the Company for cancellation. The MJR common stock was originally issued to MJR by the Company on March 13, 2013. In connection with the transaction, the Company recorded a loss on settlement of $74,998, which represented the difference in the fair market value of the Series C issued of $75,000 and the common stock received of $2. See below and Note 4 for discussion related to additional issuances of Series C. Common Stock Each share of common stock has the right to one vote per share. The holders of common stock are also entitled to receive dividends as and when declared by the board of directors of the Company, whenever funds are legally available, subject to the rights under any outstanding preferred stock. Effective February 17, 2015, the Company filed Articles of Amendment to the Company's Articles of Incorporation with the Secretary of State of Wyoming to (i) increase the Company's authorized shares of common stock from 1,000,000,000 to an unlimited number; and (ii) allow for shareholders to take actions by the written consent of the holders of outstanding shares having not less than the minimum number of votes that would be required to authorize or take the action at a meeting at which all shares entitled to vote on the action were present and voted. On October 26, 2015, the Company filed a Preliminary Schedule 14C Information Statement with the Securities and Exchange Commission in connection with approval by the Company's board of directors and majority stockholders of an amendment the Articles of Incorporation to: (i) change the Company's name from StreamTrack, Inc. to Total Sports Media, Inc., (ii) effect a 1-for 800 reverse split of the Company's common stock and (iii) decrease the authorized number of shares of common stock from an unlimited number to 40,000,000. The amendment will be effective upon filing with the Secretary of State of Wyoming, which the Company anticipates to occur approximately, but not less than, 20 days after the definitive information statement is mailed to stockholders. During the six months ended February 29, 2016, 110 shares of Series C with a value of $79,500 were converted into 795,000,000 shares of common stock. Detachable Stock Warrants On April 27, 2015, the Company entered into an Investment Agreement with RTV Media Corp. ("RTV") pursuant to which RTV initially invested $75,000 into the Company in consideration for $75,000 of worth of warrants at an exercise price of $0.0001 to purchase the common stock of the Company. Upon exercise, RTV has up to five years to exercise the warrants. In addition, RTV agreed to invest up to an additional $425,000 of capital into the Company in consideration for which additional warrants will be granted upon investment. The Company has accounted for the warrants as common stock to be issued as there are no provisions within the agreement in which will require the Company to return the capital provided. As of February 29, 2016, the Company has a total of 225,000 detachable stock warrants outstanding. The warrants have a three-year term and are exercisable into the Company's common stock at an exercise price of $0.41 per share.

Subsequent Events

Subsequent Events	6 Months Ended
	Feb. 29, 2016
Notes to Financial Statements
Note 11 - Subsequent Events	In accordance with ASC 855-10, we have analyzed our operations subsequent to February 29, 2016 to the date of these financial statements were issued, and have determined that we do not have any material subsequent events to disclose in these financial statements other than the events discussed below. Subsequent to February 29, 2016, 630,000,000 shares of common stock were issued in connection with the conversion of 420 shares of preferred stock.

Nature of Business (Policies)

Nature of Business (Policies)	6 Months Ended
	Feb. 29, 2016
Notes to Financial Statements
Basis of Presentation	The accompanying interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission ("SEC"), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company's Form 10-K for year ended August 31, 2015. In the opinion of management, all adjustments necessary in order for the consolidated financial statements to be not misleading have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year ended August 31, 2016. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, StreamTrack Media, Inc. and RadioLoyalty, Inc., California corporations. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of the Company's management, the consolidated financial statements include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the Company's financial position for the periods presented.
Going Concern	The Company's financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. For the six months ended February 29, 2016, the Company recorded an operating loss of $446,443 and a net loss of $322,188. As of February 29, 2016, the Company had a working capital deficit of $4,074,748, which excluding the derivative liability was $3,547,969. The net loss and negative working capital indicate substantial doubt about the Company's ability to continue as a going concern.
Use of Estimates	The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. Estimates are used for determining the allowance for doubtful accounts, stock-based compensation, fair values of warrants to purchase common stock, derivative liabilities and income taxes. To the extent there are material differences between these estimates, judgments, or assumptions and actual results, the Company's financial statements could be affected. In many cases, the accounting treatment of a particular transaction is specifically dictated by U.S. GAAP and does not require management's judgment in its application. There are also areas in which management's judgment in selecting among available alternatives would not produce a materially different result.
Net Loss Per Share	Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including convertible debt instruments, preferred stock, restricted stock unit grants and detachable stock warrants. Basic and diluted net loss per share was the same for the six months ended February 29, 2016 and February 28, 2015 presented as the inclusion of all potential common shares outstanding would have been anti-dilutive. The following is the calculation of dilutive shares for the three months ended February 29, 2016 and February 28, 2015: For the Three For the Three Months Ended Months Ended February 29, February 25, 2016 2015 Weighted-average common shares outstanding used in computing basic net income per share: 3,990,827,488 968,543,899 Common stock equivalents: Creditor #2 Notes 7,113,490,910 7,310,800,000 Creditor #3 Notes 1,244,666,667 1,504,666,667 Vendor note - 85,000,000 Convertible promissory notes 12,695,237,112 9,477,494,726 Series C Preferred Stock 116,900,000 681,818,182 Weighted-average common shares outstanding used in computing dilutive net income per share: 25,161,122,177 20,028,323,474 The following is the reconciliation of net income used in the calculation of the dilutive income per share for the three months ended February 29, 2016 and February 28, 2015: For the Three For the Three Months Ended Months Ended February 29, February 28, 2016 2015 Net income available to common stock holders: $ 111,684 $ 4,241,341 Adjustments: Accrued interest on convertible notes 28,320 128,113 Accretion of discount on convertible notes 123,486 331,760 Net income used in the calculation of the dilutive income per share: $ 263,490 $ 4,701,214
Recent Accounting Pronouncements	In May 2014, the FASB issued Accounting Standards Update No. 2014-09, "Revenue from Contracts with Customers", which supersedes most of the current revenue recognition requirements. The core principle of the new guidance is that an entity 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 these goods or services. New disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers are also required. This guidance is effective for the Company in the first quarter of fiscal year 2018 and early application is not permitted. Entities must adopt the new guidance using one of two retrospective application methods. The Company is currently evaluating the standard but does not expect it to have a material impact on our financial position, results of operations or cash flows. In August 2014, the FASB issued ASU 2014-15, which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if "conditions or events raise substantial doubt about the entity's ability to continue as a going concern." The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted.

Nature of Business (Tables)

Nature of Business (Tables)	6 Months Ended
	Feb. 29, 2016
Nature Of Business Tables
Calculation of dilutive shares	The following is the calculation of dilutive shares for the three months ended February 29, 2016 and February 28, 2015: For the Three For the Three Months Ended Months Ended February 29, February 25, 2016 2015 Weighted-average common shares outstanding used in computing basic net income per share: 3,990,827,488 968,543,899 Common stock equivalents: Creditor #2 Notes 7,113,490,910 7,310,800,000 Creditor #3 Notes 1,244,666,667 1,504,666,667 Vendor note - 85,000,000 Convertible promissory notes 12,695,237,112 9,477,494,726 Series C Preferred Stock 116,900,000 681,818,182 Weighted-average common shares outstanding used in computing dilutive net income per share: 25,161,122,177 20,028,323,474
Reconciliation of net income	The following is the reconciliation of net income used in the calculation of the dilutive income per share for the three months ended February 29, 2016 and February 28, 2015: For the Three For the Three Months Ended Months Ended February 29, February 28, 2016 2015 Net income available to common stock holders: $ 111,684 $ 4,241,341 Adjustments: Accrued interest on convertible notes 28,320 128,113 Accretion of discount on convertible notes 123,486 331,760 Net income used in the calculation of the dilutive income per share: $ 263,490 $ 4,701,214

Composition of Certain Financ20

Composition of Certain Financial Statement Captions (Tables)	6 Months Ended
	Feb. 29, 2016
Composition Of Certain Financial Statement Captions Tables
Property and Equipment	Property and equipment consisted of the following: February 29, 2016 August 31, 2015 Software $ 1,805,483 $ 1,775,220 Servers, computers, and other related equipment 153,824 198,924 Leasehold improvements 1,675 1,675 2,004,996 1,975,819 Less accumulated depreciation and amortization (1,425,018 ) (1,314,846 ) Property and equipment, net $ 535,964 $ 660,973
Accounts Payable and Accrued Expenses	Accounts payable and accrued expenses consisted of the following: February 29, 2016 August 31, 2015 Accounts payable $ 698,095 $ 751,129 Accrued interest 240,607 184,007 Accrued broadcaster commissions 90,510 92,304 Credit card 17,659 120,049 Accounts payable and accrued expenses $ 1,037,871 $ 1,147,489

Fair Value (Tables)

Fair Value (Tables)	6 Months Ended
	Feb. 29, 2016
Fair Value Tables
Fair Value of financial assets and liabilities	The fair value of these financial assets and liabilities was determined using the following inputs: Fair Value Measurement Using Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair values as of February 29, 2016 Liabilities: Derivative liabilities $ - $ 526,779 - $ 526,779 Total liabilities measured at fair value $ - $ 526,779 - $ 526,779 Fair values as of August 31, 2015 Liabilities: Derivative liabilities - $ 898,856 - $ 898,856 Total liabilities measured at fair value $ - $ 898,856 - $ 898,856

Derivatives (Tables)

Derivatives (Tables)	6 Months Ended
	Feb. 29, 2016
Creditor Notes 2 [Member]
Change in fair value of derivatives	On February 29, 2016, the Company re-measured the derivative liability using the input attributes below and determined the value to be $351,191 of which $255,507 was classified as income within "change in fair value of derivatives" and was recorded for the six months ended February 29, 2016 in the statement of operations. February 29, August 31, 2016 2015 Expected life (in years) 0.50 0.50 Balance of note outstanding $ 391,242 $ 391,242 Stock price $ 0.0001 $ 0.0001 Effective conversion price $ 0.00005 $ 0.00005 Shares issuable upon conversion 7,113,490,909 7,113,490,909 Risk-free interest rate 0.49 % 0.50 % Expected volatility 90.00 % 361.00 % Expected dividend yield - -
Creditor Notes 3 [Member]
Change in fair value of derivatives	On February 29, 2016, the Company re-measured the derivative liability using the input attributes below and determined the value to be $45,494 of which $57,315 was classified as income within "change in fair value of derivatives" and was recorded for the six months ended February 29, 2016 in the statement of operations. February 29, August 31, 2016 2015 Expected life (in years) 0.50 0.50 Balance of note outstanding $ 93,350 $ 93,350 Stock price $ 0.0001 $ 0.0001 Effective conversion price $ 0.000075 $ 0.000075 Shares issuable upon conversion 1,244,666,667 1,244,666,667 Risk-free interest rate 0.49 % 0.50 % Expected volatility 90.00 % 361.00 % Expected dividend yield - -
Other Notes with Adjustable Conversion Features [Member]
Change in fair value of derivatives	On February 29, 2016, the Company re-measured the derivative liability using the input attributes below and determined the value to be $47,472 of which $18,312 was classified as income within "change in fair value of derivatives" and was recorded for the six months ended February 29, 2016 in the statement of operations. February 29, August 31, 2016 2015 Expected life (in years) 1.17 1.40 Balance of note outstanding $ 56,806 $ 56,806 Stock price $ 0.0001 $ 0.0001 Effective conversion price $ 0.000085 $ 0.000085 Shares issuable upon conversion 668,305,882 668,305,882 Risk-free interest rate 0.62 % 0.50 % Expected volatility 189.00 % 369.00 % Expected dividend yield - -
Convertible Promissory Notes [Member]
Change in fair value of derivatives	On February 29, 2016, the Company re-measured the derivative liability using the input attributes below and determined the value to be $47,472 of which $18,312 was classified as income within "change in fair value of derivatives" and was recorded for the six months ended February 29, 2016 in the statement of operations. February 29, August 31, 2016 2015 Expected life (in years) 1.17 1.40 Balance of note outstanding $ 56,806 $ 56,806 Stock price $ 0.0001 $ 0.0001 Effective conversion price $ 0.000085 $ 0.000085 Shares issuable upon conversion 668,305,882 668,305,882 Risk-free interest rate 0.62 % 0.50 % Expected volatility 189.00 % 369.00 % Expected dividend yield - -

Nature of Business (Details)

Nature of Business (Details) - USD ($)	3 Months Ended
	Feb. 29, 2016	Feb. 28, 2015
Weighted-average common shares outstanding used in computing basic net income per share	3,990,827,488	968,543,899
Weighted-average common shares outstanding used in computing dilutive net income per share	25,161,122,177	20,028,323,474
Creditor Notes 2 [Member]
Common stock equivalents	$ 7,113,490,910	$ 7,310,800,000
Creditor Notes 3 [Member]
Common stock equivalents	$ 1,244,666,667	1,504,666,667
Vendor note [Member]
Common stock equivalents		85,000,000
Convertible Promissory Notes [Member]
Common stock equivalents	$ 12,695,237,112	9,477,494,726
Series C Preferred Stock [Member]
Common stock equivalents	$ 116,900,000	$ 681,818,182

Nature of Business (Details 1)

Nature of Business (Details 1) - USD ($)	3 Months Ended
	Feb. 29, 2016	Feb. 28, 2015
Nature Of Business Details 1
Net income available to common stock holders:	$ 111,684	$ 4,241,341
Adjustments:
Accrued interest on convertible notes	28,320	128,113
Accretion of discount on convertible notes	123,486	331,760
Net income used in the calculation of the dilutive income per share:	$ 263,490	$ 4,701,214

Nature of Business (Details Nar

Nature of Business (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Nature Of Business Details Narrative
Operating loss	$ (228,197)	$ (211,899)	$ (446,443)	$ (467,145)
Net income (loss)	111,684	$ 4,241,341	(322,188)	$ (811,464)
Working capital deficit	4,074,748		4,074,748
Working capital deficit excluding derivative liability	$ 3,547,969		$ 3,547,969

Composition of Certain Financ26

Composition of Certain Financial Statement Captions (Details) - USD ($)	Feb. 29, 2016	Aug. 31, 2015
Property and equipment, gross	$ 2,004,996	$ 1,975,819
Less accumulated depreciation and amortization	(1,425,018)	(1,314,846)
Property and equipment, net	535,964	660,973
Software [Member]
Property and equipment, gross	1,805,483	1,775,220
Servers computers and other related equipment [Member]
Property and equipment, gross	153,824	198,924
Leasehold improvements [Member]
Property and equipment, gross	$ 1,675	$ 1,675

Composition of Certain Financ27

Composition of Certain Financial Statement Captions (Details 1) - USD ($)	Feb. 29, 2016	Aug. 31, 2015
Composition Of Certain Financial Statement Captions Details 1
Accounts payable	$ 698,095	$ 751,129
Accrued interest	240,607	184,007
Accrued broadcaster commisions	90,510	92,304
Credit card	17,659	120,049
Accounts payable and accrued expenses	$ 1,037,871	$ 1,147,489

Composition of Certain Financ28

Composition of Certain Financial Statement Captions (Details Narrative) - USD ($)	6 Months Ended
	Feb. 29, 2016	Feb. 28, 2015
Composition Of Certain Financial Statement Captions Details Narrative
Depreciation expense, total	$ 155,272	$ 204,764

Fair Value (Details)

Fair Value (Details) - USD ($)	Feb. 29, 2016	Aug. 31, 2015
Liabilities:
Derivative liabilities	$ 526,779	$ 898,856
Total liabilities measured at fair value	$ 526,779	$ 898,856
Quoted Prices in Active Markets for Identical Instruments Level 1 [Member]
Liabilities:
Derivative liabilities
Total liabilities measured at fair value
Significant Other Observable Inputs Level 2 [Member]
Liabilities:
Derivative liabilities	$ 526,779	$ 898,856
Total liabilities measured at fair value	$ 526,779	$ 898,856
Significant Unobservable Inputs Level 3 [Member]
Liabilities:
Derivative liabilities
Total liabilities measured at fair value

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative)	Feb. 29, 2016USD ($)
Commitments And Contingencies Details Narrative
Remaining amount on the settlement of liabilities	$ 151,290

Capital Lease (Details Narrativ

Capital Lease (Details Narrative) - USD ($)	Feb. 29, 2016	Aug. 31, 2015
Capital Lease Details Narrative
Capital lease payable - in default	$ 54,704	$ 54,704

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	Feb. 29, 2016	Aug. 31, 2015
Related Party Transactions Details Narrative
Related party payables	$ 187,310	$ 159,660

Debt Instruments (Details Narra

Debt Instruments (Details Narrative) - USD ($)	6 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Aug. 31, 2015
Amortized discount to interest expense	$ 246,976	$ 331,760
Convertible promissory notes	57,459		$ 19,794
Related party convertible notes payable	673,249		197,850
Future maturities of notes payable, current			957,442
Future maturities of notes payable in 2017			1,067,270
Future maturities of notes payable in 2018			75,000
Creditor Notes 3 [Member]
Remaining principal balance	93,350		93,350
Creditor Notes 2 [Member]
Amortized discount to interest expense		62,500
Remaining principal balance	391,242		391,242
Convertible Promissory Note [Member]
Amortized discount to interest expense	246,976	$ 191,755
Discount due to derivative liability	370,811
Convertible promissory notes held by related parties	1,153,964		1,068,964
Convertible promissory notes	1,702,120		1,615,120
Related party convertible notes payable	$ 928,464		$ 197,850

Derivatives (Details)

Derivatives (Details) - Creditor Notes 2 [Member] - USD ($)	6 Months Ended	12 Months Ended
	Feb. 29, 2016	Aug. 31, 2015
Expected life (in years)	6 months	6 months
Balance of note outstanding	$ 391,242	$ 391,242
Stock price	$ 0.0001	$ 0.0001
Effective conversion price	$ 0.00005	$ 0.00005
Shares issuable upon conversion	7,113,490,909	7,113,490,909
Risk-free interest rate	0.49%	0.50%
Expected volatility	90.00%	361.00%
Expected dividend yield

Derivatives (Details 1)

Derivatives (Details 1) - Creditor Notes 3 [Member] - USD ($)	6 Months Ended	12 Months Ended
	Feb. 29, 2016	Aug. 31, 2015
Expected life (in years)	6 months	6 months
Balance of note outstanding	$ 93,350	$ 93,350
Stock price	$ 0.0001	$ 0.0001
Effective conversion price	$ 0.000075	$ 0.000075
Shares issuable upon conversion	1,244,666,667	1,244,666,667
Risk-free interest rate	0.49%	0.50%
Expected volatility	90.00%	361.00%
Expected dividend yield

Derivatives (Details 2)

Derivatives (Details 2) - Other Notes with Adjustable Conversion Features [Member] - USD ($)	6 Months Ended	12 Months Ended
	Feb. 29, 2016	Aug. 31, 2015
Expected life (in years)	1 year 1 month 24 days	10 months 24 days
Balance of note outstanding	$ 114,350	$ 114,350
Stock price	$ 0.0001	$ 0.0001
Effective conversion price	$ 0.00009	$ 0.00009
Shares issuable upon conversion	1,270,555,556	1,270,555,556
Risk-free interest rate	0.62%	0.50%
Expected volatility	369.00%	189.00%
Expected dividend yield

Derivatives (Details 3)

Derivatives (Details 3) - Convertible Promissory Notes [Member] - USD ($)	6 Months Ended	12 Months Ended
	Feb. 29, 2016	Aug. 31, 2015
Expected life (in years)	1 year 2 months 1 day	1 year 4 months 24 days
Balance of note outstanding	$ 56,806	$ 56,806
Stock price	$ 0.0001	$ 0.0001
Effective conversion price	$ 0.000085	$ 0.000085
Shares issuable upon conversion	668,305,882	668,305,882
Risk-free interest rate	0.62%	0.50%
Expected volatility	189.00%	369.00%
Expected dividend yield

Derivatives (Details Narrative)

Derivatives (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Derivative liability			$ 2,500	$ 45,000
Change in fair value of derivatives	$ 368,195	$ 4,850,179	372,077	$ 274,204
Creditor Notes 2 [Member]
Derivative liability			351,191
Change in fair value of derivatives			255,507
Creditor Notes 3 [Member]
Derivative liability			45,494
Change in fair value of derivatives			57,315
Vendor note [Member]
Derivative liability			82,625
Change in fair value of derivatives			40,941
Convertible Promissory Notes [Member]
Derivative liability			47,472
Change in fair value of derivatives			$ 18,312

Stockholders Equity (Details Na

Stockholders Equity (Details Narrative)	6 Months Ended
	Feb. 29, 2016USD ($)$ / sharesshares
Stockholders Equity Details Narrative
Common stock series C, shares issued	110
Common stock series C, value | $	$ 79,500
Common stock series C, converted shares	795,000,000
Detachable stock warrants outstanding	225,000
Warrants Term	3 years
Detachable stock warrants exercise price | $ / shares	$ 0.41